When Donald Trump was elected earlier this month, the world began preparing for whatever chaos that might bring.
On Monday, that chaos came home to Canada.
The U.S. president-elect said he will impose 25-per-cent tariffs on all products from Canada (and Mexico) as soon as he takes office in the new year, promising to keep them in place until both countries do more to secure their borders and stop drugs and migrants entering the U.S. illegally from their territories.
Considering that last year Canada exported $592.7-billion in goods to our southern neighbour – more than 77 per cent of all our exports in 2023 - the Canadian economy could be in for a rough ride.
For Alberta, which sends the vast majority of our oil and gas to the U.S., tariffs will most definitely take a bite out of the provincial coffers.
“The incoming U.S. administration has valid concerns related to illegal activities at our shared border. We are calling on the federal government to work with the incoming administration to resolve these issues immediately, thereby avoiding any unnecessary tariffs on Canadian exports to the U.S.,” Premier Danielle Smith said in a statement.
And while her government urged (some argue she was conciliatory) the Trudeau government to work with Trump, by the next day, Smith was off on a different tack, ready for another round of the Alberta versus Ottawa grudge match.
On Tuesday, the United Conservative Party took another step in its war against the federal government’s proposed emissions ceiling, which is essentially a production cap for oil and gas and, thus, infringes on Alberta’s jurisdiction over the development of its non-renewable resources.
Using her signature legislation, the Alberta Sovereignty Within a United Canada Act, Smith proposed a list of actions Alberta could pursue to fight the emissions plan, including a court challenge. One of the options would allow the provincial government to take ownership of data that oil and gas companies collect about greenhouse gases at their facilities, deeming the information proprietary.
“Companies should look at this and thank us for this, for being willing to protect them from federal government overreach,” she said. “We’re anticipating that this should be welcomed by the energy sector.”
Lisa Baiton, chief executive of Canadian Association of Petroleum Producers, said in a statement that the lobby group appreciates the support of the Alberta government. “Ottawa’s emissions cap is a cap on our economy and our prosperity,” she said.
Unsurprisingly, the federal response was not as appreciative.
“Smith’s focus on manipulating and politicizing emission reporting is yet another distraction for her government,” read a statement from Steven Guilbeault, the federal Environment Minister, and Jonathan Wilkinson, who oversees the federal Energy and Natural Resources department.
Clearly not distracted, on Thursday, Round 2 in the continuing provincial-federal fight was held.
The province announced it had launched a second challenge to Ottawa’s Impact Assessment Act, which the federal government enacted in 2019. The province fought the act from the beginning, getting a limited victory when last year, when the Supreme Court of Canada, in a non-binding opinion, advised that Ottawa overstepped its constitutional authority.
While the Trudeau government amended the act to comply, Alberta argues it didn’t go far enough, hence the latest court challenge.
“The Prime Minister should know better by now than to think that we are bluffing,” Smith said Thursday. “We’re prepared to fight this time, the next time and any time Ottawa thinks they know what is best for our province.”
It’s clear that the next round of Alberta versus Ottawa is likely not far off.
This is the weekly Alberta newsletter written by Alberta Bureau Chief Mark Iype. If you’re reading this on the web, or it was forwarded to you from someone else, you can sign up for it and all Globe newsletters here.