Alberta Undermining Canada’s Trade Strategy as Trump Warns of ‘Failed State’ Status
Trade Experts and Premiers Clash Over Response to U.S. Tariff Threats
OTTAWA – Canada’s former chief trade negotiator, Steve Verheul, has warned that Alberta’s opposition to retaliatory trade measures is weakening the country’s efforts to counter U.S. tariff threats. This comes as former U.S. President Donald Trump continues to suggest that Canada could face “failed state” status if he reimposes sweeping trade restrictions.
Canada’s Unified Trade Front Faces Internal Division
In response to Trump’s proposal of a 25% tariff on all Canadian imports, Prime Minister Justin Trudeau has been rallying provincial premiers to present a unified front. The federal government has emphasized that all sectors of the Canadian economy should be leveraged to push back against the looming trade measures.
However, Alberta Premier Danielle Smith has broken ranks, arguing that Canada should focus on diplomatic solutions rather than retaliatory tariffs or limiting energy exports. Her stance has drawn criticism from trade experts like Verheul, who played a key role in negotiating the Canada-United States-Mexico Agreement (CUSMA) following Trump’s first term.
“When they all briefed up, the messages were the same, and it was much easier to do it that way,” Verheul said in a speech Tuesday at the Empire Club of Canada. “There is a very strong sense of unity among all of the premiers at this point—with the one exception of Alberta.”
Alberta’s Position Weakens Canada’s Trade Stance, Says Verheul
Verheul stressed that Alberta’s divergence is complicating Canada’s ability to negotiate effectively, leaving the country in a state of “damage control.” He urged federal leaders to work toward bringing Alberta in line with national trade strategy to strengthen Canada’s position in negotiations with the U.S.
So far, Smith’s office has not responded to requests for comment.
Other Premiers Push Back on Federal Trade Strategy
While Alberta has been the most vocal critic, other provinces have also questioned the federal government’s approach to Trump’s trade threats.
Saskatchewan Premier Scott Moe said Wednesday that he had “an issue with” imposing tariffs on energy exports, suggesting such measures could hurt Canadian producers.
Quebec Premier François Legault echoed similar concerns, stating that any trade countermeasures should only be implemented with provincial approval.
Trump Repeats Calls for Canada to Become an American State
Trump escalated his rhetoric on Friday, once again suggesting that Canada should become an American state. He dismissed the importance of Canadian imports to the U.S. economy, stating, “It’s sort of crazy” to argue that America needs Canadian goods.
He also claimed that Trudeau previously acknowledged that Canada receives billions in U.S. subsidies and would be a “failed nation” without them. Trump argued that if Canada became part of the U.S., it would have “better health coverage” and wouldn’t need to worry about defense spending.
Canadian Leaders Reject Trump’s ‘Failed State’ Narrative
Canadian officials have strongly pushed back against Trump’s comments.
Defence Minister Bill Blair called Trump’s rhetoric “offensive”, stating: “Canada will never be a failed state.”
Chrystia Freeland, a candidate for Liberal leadership and a key figure in past NAFTA negotiations, dismissed Trump’s warnings, saying, “Canada would absolutely not become a failed state” even if the proposed tariffs take effect.
What’s Next for Canada-U.S. Trade Relations?
With Trump positioning himself for a possible return to the White House, concerns over U.S.-Canada trade tensions are intensifying. If the U.S. moves forward with heavy tariffs, Canada may face economic challenges that require both provincial and federal cooperation to mitigate the impact.
Whether Alberta ultimately aligns with Ottawa’s trade strategy remains to be seen, but divisions within Canada’s leadership could complicate efforts to negotiate favorable trade terms with a potentially hostile U.S. administration.
Source : The Canadian Press
