Less than a week after Donald Trump took office, Canadian premiers are deeply divided over how to respond to U.S. trade tariffs, with Trump threatening to dramatically reshape relations between the two countries.
Canadian officials have tried to defuse the crisis with personal appeals to the president-elect, a multimillion-dollar advertising spree and targeted threats, but the country still faces uncertainty over how Trump's tariffs will take effect. On Monday, Bloomberg reported that the incoming U.S. administration is considering raising tariffs by 2%-5% per month to avoid a spike in inflation.
With Justin Trudeau's government largely silent on its next steps, Canada's provincial leaders, keenly aware of the looming economic damage, have taken the matter into their own hands.
Alberta Premier Danielle Smith, who met briefly with Trump at Mar-a-Lago in Florida over the weekend, returned with grim news: She had received no assurances that the president-elect would 's team intends to back down from the imposed threat. Imposing a 25% tariff on all Canadian goods - a measure that economists say will harm both sides of the border.
"I think we need to prepare for the tariffs that are coming," she told reporters.
Smith, the first prime minister to meet with Trump since he first threatened tariffs in November, had hoped to obtain a "waiver" for Canadian oil. Her province exports 3.5 million barrels of oil per day to the United States.
But unlike other premiers, the Alberta leader has repeatedly warned against domestic calls for retaliation, warning that she "will not support" a possible energy embargo: "You end up trying to retaliate." Hurt yourself."
In contrast, Ontario Premier Doug Ford is considering cutting off electricity exports to the United States or targeting American alcohol, warning that the United States will "feel pain" if the tariffs continue.
But Saskatchewan Premier Scott Moe expressed support for Smith's stance, echoing the argument that retaliatory tariffs would cause domestic harm.
"This is going to be the most divisive conversation and the most divisive situation we've ever had in Canada," Moe told CBC News..
But Ford said Smith was "not speaking for the country" when she objected to the strong response from the provinces.
"That's Danielle Smith, she's speaking on behalf of Alberta...I'm speaking on behalf of Ontario, the province is going to be hurt more," he told the Guardian. "(Trump's team) is not going after oil. They are going after Ontario. Let's be very clear about this — we're going to make sure we do everything we can to protect Ontario jobs."
On Tuesday, he warned that job losses could reach 500,000 if tariffs were implemented, underscoring the nature of Ontario's manufacturing supply chain.
Newsletter Promotion Post
The dispute appears to undermine the united "Team Canada" approach sought by the country's leaders and could cause friction when prime ministers meet on Wednesday.
NDP Leader Jagmeet Singh wants Canada to block exports of critical minerals including lithium and potash to thwart U.S. tariffs.
"If (Trump) wants to provoke Canada, we have to make sure that it hurts Americans as well," Singh told a news conference in Ottawa.
Canada's Conservative former Prime Minister Stephen Harper also weighed in on the issue, telling an American podcast host that Trump's comments were not the words of a "friend, partner and ally."
The U.S. president-elect has focused on what he sees as a trade deficit with Canada, saying Canada exports roughly C$100 billion ($70 billion) more to the U.S. each year.
Harper said Canada sells oil to the United States at a discount because of export restrictions.
"It's true that Canada currently has a modest trade surplus with the United States. The reason we do that is because you buy a lot of our oil and gas," he said. "In fact, you're buying it at a discount to the world market. In fact, Canada is subsidizing the U.S. in this regard... If Mr. Trump feels that way, maybe Canadians should consider selling oil and gas to other People. We've certainly always wanted to do something like this - maybe now is the time to do it."