Alberta Premier Danielle Smith Reacts to Trump's Threat to Increase Canadian Tariffs, Calls it a "Tax on the American People"

Alberta Premier Danielle Smith reacts to Donald Trump's threat to increase Canadian tariffs by 35%, stating it would be a tax on the American people and hurt both Canadian and American businesses and workers. Smith suggests Ottawa should repeal Trudeau-era laws holding Alberta's economy back and work to approve pipelines, rail expansions, and transmission lines to diversify and grow export markets.

Alberta Premier Danielle Smith has reacted to U.S. President Donald Trump's announcement of a 35% tariff increase on Canadian goods, effective August 1, stating that it would be a tax on the American people and negatively impact both Canadian and American businesses and workers. Smith suggested that Ottawa should repeal Trudeau-era laws that hinder Alberta's economic growth and work towards approving pipelines, rail expansions, and transmission lines to diversify and grow export markets [1].

The tariff threat comes as part of a broader trade war initiated by Trump earlier this year. The U.S. President has informed trade partners, including powerhouse suppliers like Japan and South Korea, that sharply higher tariffs will commence on August 1, marking a new phase in the ongoing trade conflict [1]. While major trade partners like the EU, China, and India have been kept out of the tariff correspondence for now, the threat of increased tariffs has sparked concern among Canadian policymakers.

Premier Smith's response underscores the potential economic fallout of the tariff increase. She argued that such measures would not only burden American consumers but also disrupt supply chains and negatively impact job markets on both sides of the border. Smith's call for Ottawa to repeal Trudeau-era laws that she believes hinder Alberta's economy is a strategic move to position the province as a key player in Canada's economic recovery.

Smith's proposal to approve pipelines, rail expansions, and transmission lines aims to diversify Alberta's export markets and reduce reliance on the U.S. market. By facilitating the transportation of natural resources, these infrastructure projects could boost Alberta's economic growth and create jobs, thereby mitigating the potential negative effects of the tariffs.

The Alberta government's AI Data Centre Strategy, released in December 2024, also aims to position the province as a leader in the AI sector. This strategy includes several priorities to preserve the well-being of Albertans, including a focus on keeping utilities affordable and maintaining a stable utility market. The government is currently seeking feedback from stakeholders on potential approaches to generate revenue from data centres, including a levy on the value of computing equipment or electricity consumed by data centres [2].

In contrast, the Happy Belly Food Group, a leader in acquiring and scaling emerging food brands across Canada, has seen significant growth in its Heal Wellness franchise in Alberta. The company recently expanded its Heal Wellness franchise in Alberta from 10 to 15 locations, marking a notable increase in its commitment to the province. This expansion is part of a broader strategy to build a leading force in the Canadian QSR sector through its asset-light franchise model [3].

The tariff threat from the U.S. and the economic strategies being pursued by the Alberta government highlight the complex interplay between trade policies and economic development. As the trade war continues, both Canada and the U.S. will need to navigate these challenges to minimize the economic impact on their respective citizens and businesses.

References:
[1] https://www.businesstoday.in/bt-tv/video/donald-trump-informs-14-nations-of-tariffs-beginning-aug-1-says-deadline-flexible-483479-2025-07-08
[2] https://www.alberta.ca/data-centre-levy-engagement
[3] https://www.stocktitan.net/news/HBFGF/happy-belly-s-heal-wellness-qsr-expands-alberta-footprint-as-y98m1crz9con.html