Alberta, Saskatchewan Announce Response to US Tariffs

Alberta Premier Danielle Smith speaks in Calgary on May 29, 2023. (The Canadian Press/Jeff McIntosh); (Right) Saskatchewan Premier Scott Moe speaks during the Saskatchewan Party Convention in Regina on Nov. 4, 2023. The Canadian Press/Heywood Yu

Alberta and Saskatchewan say they will shun American bidders on government procurement contracts and stop the purchase of U.S. alcohol as part of their response to U.S. tariffs.

The premiers of both provinces announced the measures separately on March 5, a day after the U.S. administration imposed 25 percent tariffs on all Canadian goods, with a 10 percent reduced levy on energy products.

In response to the tariffs, Alberta Premier Danielle Smith said her province is halting the purchase of U.S. products and services for government procurements, and that the province’s liquor and gaming agency will no longer buy U.S. alcohol or video lottery terminals.

The province will also seek new energy markets, both within Canada and abroad. Meanwhile, cutting or taxing energy exports to the United States remains off the table, the premier said.

“These tariffs are unjustified, and a clear breach of the North American Free Trade Agreement, or CUSMA, that was signed by President Trump during his first term,” Smith told a news conference in Medicine Hat, Alta.

“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.”

Alberta will also enter into free trade and labour mobility agreements with provinces that adopt similar measures, said Smith, echoing an initiative put forward by Nova Scotia Premier Tim Houston last month. “The goal is to have no exceptions, just free trade and free movement of Canadian workers right across our province,” she said.

The provincial government will help grocers and retailers with labelling Canadian products at stores, and encourage them to buy their stock from suppliers within the province, across the country, or nations with which Canada has free trade agreements “that are being honoured,” Smith said.

In addition, the province will launch an advertising campaign to make it easier for residents to find information about the origin of products on store shelves, the premier said.

Smith said Alberta would “love to increase the amount of oil and gas we send to our southern neighbours” to meet their energy needs, but that the tariffs and their economic impact don’t make it possible.

Alberta will work to expand its energy market by building more pipelines to transport fuel products to Canada’s east, west, and north coasts, as well as to Asia and Europe, Smith said, adding that to do so, the province will work with industry leaders, other provinces, the federal government, and First Nations.

“Of course, for this strategy to work in Alberta, we will need to see a significant attitude adjustment from many of our fellow Canadian political leaders with respect to the importance of unlocking and exporting Canadian energy around the world, but I’m confident that Canadians want exactly that right now,” she said.

The premier noted her province would “welcome” the opportunity to help the United States achieve energy dominance “as soon as the U.S. government is prepared to respect our country and to treat us as allies and partners again.”

If the tariffs remain in place for months or longer, they will lead to significant job losses, higher inflation, and large budget deficits in Alberta, Smith said, adding that she is optimistic the province will overcome the challenge.

Smith will travel to Houston next week to continue a diplomatic “push” to reverse the tariffs.

Saskatchewan’s Tariff Response

The Saskatchewan government will prioritize Canadian suppliers when purchasing goods and services, with the goal of reducing or eliminating U.S. procurement in response to the “unjustified” tariffs, Premier Scott Moe said in a March 5 press release.

The provincial government has paused future capital projects, and for those underway, it has asked contractors to report on and reduce American purchases.

“These extraordinary measures are a direct response to President Trump’s unjustified tariffs and a direct attack on the Canadian economy,” Moe said. “This decision was not made lightly, but the Government of Saskatchewan has always and will always stand up for Saskatchewan’s interests and protect our jobs, our economy and our residents.”

Saskatchewan liquor retailers will stop purchasing U.S. alcohol but can continue selling their remaining inventory to avoid losses on previously bought stock, the province said.

The provincial government has also instructed its lottery and gaming agency to find alternative suppliers for the more than $40 million worth of upgraded U.S. video lottery terminals and slot machines it expected to buy this year.

The province said it expects municipalities, school divisions, and post-secondary institutions to adopt similar measures and prioritize Canadian suppliers.