Premier Danielle Smith says her government is open to free trade agreements with other provinces. Eli J. Ridder/CHAT News

By Pattison Media Staff

TRADE WAR

Premier cuts off future alcohol from U.S. in tariff row, but no change to oil

Mar 5, 2025 | 2:42 PM

Premier Danielle Smith, in response to sweeping U.S. tariffs, is halting Alberta’s purchase of U.S. goods, alcohol and gambling machines while opening her government up to free trade agreements with Canada’s other provinces.

“This economic attack on our country, combined with Mr. Trump’s continued talk of using economic force to facilitate the annexation of our country, has broken trust between our two nations in a profound way,” Smith said from Medicine Hat on Wednesday.

Smith, in her first televised address responding to the U.S. sanctions, called President Donald Trump’s levies “a betrayal of a deep and abiding friendship” that existed between the two countries.

Alberta will no longer buy American alcohol and video lottery terminals or sign contracts with American companies, following suit with other provinces. Alberta’s liquor stores are privately owned but still must order stock through the provincial government.

Smith reiterated that while oil and gas from Alberta is critical to the U.S. economy, she won’t play what she called that “trump card” by adding levies to oil and gas exports or cutting off the province’s supply heading south.

Adding export taxes on energy would only rebound on Canadian consumers because the U.S. would respond in kind and Ontario and Quebec rely on cross-border oil shipments.

“Cutting off energy entirely would make Canada the bad guy for Americans, and we don’t want that. We want the Americans to blame their struggles on the actual source of their problems — that being the Trump tariffs,” said Smith.

Alberta wants to bring down interprovincial trade barriers that studies claim cost the Canadian economy billions of dollars annually.

“My government will enter into free trade and labour mobility agreements with every province that is willing to do so,” Smith said.

“The goal is to have no exceptions, just free trade and free movement of Canadian workers right across our province.”

Lisa Dressler, executive director of the Southeast Alberta Chamber of Commerce, has said eliminating internal market divisions would provide a significant boost to Canada’s economy.

Trump slapped 25 per cent tariffs on all Canadian goods and 10 per cent levies on energy, saying he wants Canada to take action on cross-border drug traffic.

Alberta’s public safety minister said, as work continues to improve border security, the province will build three new vehicle inspection stations over the next two years with a $15-million investment funded through the 2025 budget.

Mike Ellis, the minister, emphasized Alberta’s portion of the Canada-U.S. border is secure but the inspection stations aim to add another layer of protection.

“Commercial vehicles are commonly used to smuggle these drugs and illegal weapons and unfortunately people,” Ellis said.

“Our increased presence at the inspection stations sends a very clear message that cross-border crime will be promptly identified and disrupted.”

— With files with The Canadian Press.