EDMONTON, Alta. – Alberta Premier Danielle Smith has joined Saskatchewan Premier Scott Moe in putting the brakes on the idea of export taxes on energy.
Moe had spoken at length against export taxes on oil and gas and potash exports to the USA at a news conference in Prince Albert on Wednesday, saying it would be a hit to the Saskatchewan and Canadian economy.
Soon after on Wednesday, Smith echoed that same theme in a province-wide address that was also shared on social media.
In that address, Smith came out swinging against export taxes, painting a doom-filled scenario of the consequences for Canada.
"Although I understand the need to respond strongly to these tariffs, I cannot think of a more disastrous policy decision than cutting off or taxing Alberta’s oil to the United States,” Smith said.
"Doing so would absolutely devastate the Canadian economy. It would not only extinguish the livelihoods of hundreds of thousands of Albertans, it would economically hobble our friends and neighbours in other provinces to the east.”
She said as an example, if "Canada were to put lets say a 50 per cent tariff on the four million barrels of oil that we export daily to the United States, the United States would immediately respond with a 50 to 100 per cent export tariff on oil and natural gas that they export to Ontario, along with millions of barrels of diesel fuel and gasoline that Ontario and Quebec import from the midwest."
"This would bring the economies of Ontario and Quebec to a grinding halt."
Meanwhile, she said, refineries in the United States that currently use Alberta’s heavy oil would start looking to Venezuela to replace it.
“As a result, we would lose the United States as a customer entirely and likely forever. This would result in the loss of about half a million jobs at a minimum, mostly in Alberta, but also hundreds of thousands of jobs in Ontario and Quebec."
If Canada were to cut off oil entirely, Smith said, it would mean the same results but even worse.
“The United States would, of course, respond and cut off all gasoline and diesel from their refineries to Ontario and Quebec, right as we turn into fall and winter,” Smith said. She also noted that the USA has strategic reserves that Canada does not.
Smith said on there was a better way forward. On social media she called for support for Canadian workers and businesses hurt by the tariffs, to "double down on diplomacy with U.S. lawmakers and governors", to break down interprovincial trade barriers, buy Canadian wherever possible, and strengthen relationships with international trading partners to open new markets for Canadian products.
"We need to move projects forward, starting by approving the pipeline to the west coast immediately to get construction underway as soon as possible. It is integral to reaching more markets for Alberta oil and strengthening Canada’s economic independence."
The remarks from Smith seemed to echo Moe's, who had told reporters in Prince Albert that his government would support Canadian counter-tariffs “when they are focused, when they are targeted, and more importantly, they are in place for the short term, and they are making every effort to bring our American partners back to the table and for us to return to that negotiating table so that we can find an agreement — find an agreement and move forward."
Both premiers seemed to be responding to a flurry of media commentary about whether potash, oil and gas, or other natural resources ought to be used as leverage against the Americans. In one interview Premier Doug Ford of Ontario said that "everything is on the table" including cutting off electricity and critical minerals. There were also comments from former Alberta Premier Jason Kenney, who in an interview suggested export taxes should not be ruled out.
For her part, Smith said in her address she was responding to calls from the opposition NDP leader in Alberta to threaten export taxes as a bargaining chip.
