Former Alberta premier Jason Kenney is calling for the province to take a stronger stance as the trade war with the U.S. heats up.
Speaking on CBC Radio's Calgary Eyeopener Tuesday morning, the former United Conservative Party leader said export taxes on the province's energy resources should be on the table to put additional pressure on U.S. President Donald Trump.
"I think it needs to be telegraphed that if he does something really reckless in further escalating this, and in ways that are potentially existentially damaging to the Canadian economy, that we do have stronger ways of defending ourselves, such as a prospective export tax on some of our critical exports to the United States on which they rely, including oil, gas and potash," he said.
Alberta Premier Danielle Smith has said cutting energy exports to the U.S. is a non-starter, saying in a written statement Monday doing so "would be extremely harmful to Canadians and is not a viable option.”
Alberta premier under pressure to take more ‘Team Canada’ approach to escalating U.S. trade war
Kenney's comments come as Canada and the U.S. trade tariff threats after talks of an agreement collapsed last Friday. Trump slapped 50 per cent tariffs on $28-billion worth of Canadian goods, while Prime Minister Mark Carney announced dollar-for-dollar counter-tariffs on Tuesday.
Kenney said he does not support restricting energy exports to Canada's southern neighbour, but a modest tax could "remind the Trump administration that what they're undertaking is ultimately counterproductive."
More than two-thirds of Alberta's oil is piped to the United States. Kenney said this means it could be a powerful economic tool to leverage amid the heated trade rhetoric.
"We need to be mindful of where we have the greatest leverage, not to play that card now or not to recklessly threaten things, but quietly to remind them that there are some very damaging ways that we could affect the American economy without negatively affecting our own," he said.
In addition to energy, he said Alberta and Saskatchewan should also join the other provinces in restricting the sale of U.S. alcohol, saying it's one step which seems to have registered at the White House.
On her provincial radio show Saturday, Smith said she has no interest in banning imports of U.S. alcohol, and that the federal government should be cautious about retaliatory tariffs.
Kenney's comments on the trade war come amid news that he and former Alberta premier Rachel Notley are teaming up to make the case for the province to stay in Canada.
The Canadian Chamber of Commerce said the former political opponents are co-chairing its campaign to keep the country united.
Kenney's UCP defeated Notley's NDP government in 2019.
The chamber says the pair will lead the campaign in demonstrating that a prosperous Alberta includes Canada.
