Alberta's cabinet set to meet Tuesday to discuss potential response to U.S. tariffs

Alberta Premier Danielle Smith, left, talks with colleagues during the fall meetings of Canada's premiers hosted by Ontario in Toronto, Monday, Dec. 16, 2024. THE CANADIAN PRESS/Nathan Denette

EDMONTON — Alberta Premier Danielle Smith says she's "greatly heartened" by U.S. President Donald Trump's tariff pause, saying the eleventh-hour deal with Canada follows through on a border security measure she had been calling for.

Prime Minister Justin Trudeau said late Monday the tariffs will be paused for "at least 30 days" while Canada appoints a "fentanyl czar" and works with the U.S. to combat drug trafficking and organized crime.

Trump’s duties of 10 per cent on energy and 25 per cent on all other Canadian goods were to go into effect Tuesday.

Smith, in a social media post, said it became clear in her discussions with U.S. officials that Canada needed to appoint the special czar to avoid the tariffs.

"Diplomacy has won the day. Let us ensure that continues as we know there is much more work ahead of us," she wrote.

Smith began calling for Ottawa to appoint a retired military general as "border czar" to work with Trump appointee Tom Homan last week.

On Monday, Smith reiterated her call for federal government officials and fellow premiers to de-escalate their rhetoric and abandon non-tariff measures for now.

"There are so many win-win solutions on trade and security between our two nations. Let us turn this crisis into an opportunity to find them for the benefit of Canadians and Americans," said Smith.

The news came after other provinces announced planned measures to restrict or cancel contracts with American firms and stop U.S. alcohol sales in provincial liquor stores.

For many, those plans, too, are now on hold.

Trudeau has said Canada would retaliate against Trump's duties with tariffs of its own on $155 billion of American goods, including alcohol, furniture and natural resources.

Smith has been committed to a diplomatic approach with American lawmakers and is to travel to Washington, D.C., again this month.

A delegation of three Alberta cabinet ministers is to be in Washington this week to attend the National Prayer Breakfast events in a continued effort to sway lawmakers south of the border.

In January, Smith broke ranks with her fellow premiers and Trudeau, dismissing the possibility of a counter-tariff on Alberta's oil and gas shipments.

Trump has linked the levies to fentanyl flooding the U.S from Canada, and Smith has said he is right to focus on "major problems like our broken border" and the dangers of the drug.

U.S Customs and Border Protection statistics show less than one per cent of all fentanyl seized comes from the northern border.

Alberta NDP Leader Naheed Nenshi said the reprieve buys time, but he called on Smith's United Conservative Party government to create an all-party committee on market diversification.

He said nothing has been done on that critical file for the five years the UCP has been in government.

"Danielle Smith is still parroting the talking points of the U.S. president, flying an American flag on her desk, taking credit for something she had no part in," he said.

Nenshi added that Albertans can do their part to support Alberta businesses and Canadian-made goods by buying local.

“This is a time to stand with our local businesses and workers in the face of massive economic strife.”

This report by The Canadian Press was first published Feb. 3, 2025.

Lisa Johnson, The Canadian Press