‘Everything on the table’ to combat U.S. tariffs – except oil, says Smith

Southern Alberta Newspapers File Photo. EVERYTHING ON THE TABLE: Premier Danielle Smith and Cypress-Medicine Hat MLA Justin Wright held a BBQ for residents at Wright’s constituency office during the Medicine Hat Exhibition & Stampede.

By Zoe Mason
Southern Alberta Newspapers

Premier Danielle Smith sees the United States as a threat to Canada’s energy independence worth combating through the construction of a new eastbound pipeline. But she’s not prepared to fight the current tariff threat by leveraging Canadian oil.

At the Charlottetown meeting of Canada’s premiers, Manitoba Premier Wab Kinew said he was, “willing to entertain” the Northern Shield pipeline proposal unveiled by Smith and Doug Ford earlier this month.

The 3,300-kilometre pipeline is proposed to transport more than 500,000 barrels of crude oil per day between Hardsity, Alta. and Sarnia, Ont. Experts have raised questions about redundancy, pointing out the Sarnia refineries are already fed by Alberta oil using the Enbridge infrastructure that crosses Michigan.

It was also announced just days after a pipeline to the Pacific was announced by Smith and Carney. The westbound pipeline is expected to cost $40 billion, of which 90 per cent would come from public funds.

Ontario is presently undertaking a $17 million feasibility study. Premier Doug Ford was not clear about funding pathways for the Northern Shield pipeline, but said a taxpayer-funded model was on the table.

During a media availability in Medicine Hat on Friday, Smith said the case for the eastbound pipeline is less about business and more about energy independence.

“Right now, it’s wholly dependent on the goodwill of the United States going through Michigan, and the Michigan governor has been trying to shut it down for some time.”

However, Smith does not agree that tensions with the U.S. are reason enough to impose retaliatory restrictions on Canadian oil and potash exports, a tactic endorsed by some of the premiers at this week’s meeting, including Ford.

United States President Donald Trump’s announcement of a new slew of tariffs earlier this week dictated the agenda at the annual meeting of the Canadian premiers. Trump is threatening to impose a 50 per cent tariff on select Canadian exports due to the impact of Canadian wildfire smoke.

Prime Minister Mark Carney told reporters on the last day of the premiers’ council meeting that Canada would not rule out retaliation if no agreement is reached on the new tariffs by the deadline of Aug. 19.

“Everything is on the table depending on the outcome of the negotiations,” he said.

Smith has been clear she will not allow Alberta’s oil to be used as leverage.

“I’m going to try to do everything I can to keep Canada from doing something so dumb,” said Smith.

“I do not agree with tariffs. I don’t think that we benefit from escalating a trade war.”

“My view has been, if you want to use energy, let’s promise to sell the Americans more rather than threaten to sell them less.”

She sees no contradiction in that stance.

“I think we want to sell oil in all directions. North, east, south and west.”

Smith says she and Carney are aligned on leaving oil out of the tariff equation.

“The Prime Minister has taken a similar view to me that you don’t start a negotiation by telling somebody how much you’re going to punish them,” she said.

“I’ve appreciated that tone from the Prime Minister, and I hope it leads to an agreement.”

Smith also commented on the verification of the Stay Free Alberta petition, which proceeded Friday after a two-month delay due to a court ruling that found the petition violated Indigenous rights.

According to Smith, the verification changes little. Smith advanced a government question on Alberta independence to the referendum ballot in May.

“I’ve always said that we want the citizen initiative process to be permissive. That if citizens gather and they get sufficient signatures, that they should be allowed to put a question forward that matters to them for debate of their fellow citizens, and that’s what’s going to happen,” she said.

“We are proceeding with a question that asks Albertans whether they want to remain in Canada or start the process to have a binding referendum to leave, and we’ll continue on with that referendum question, and we’ll see what Albertans tell us on October the 19th.”