'No choice' but to react to U.S. tariffs, Alberta premier says in supporting federal response

Alberta Premier Danielle Smith says U.S. tariffs are "an unjustifiable economic attack on Canadians and Albertans" that represent a clear breach of the Canada-U.S.-Mexico free trade agreement.

"These tariffs will hurt the American people, driving up costs for fuel, food, vehicles, housing and many other products," Smith said in a statement Tuesday.

"They will also cost hundreds of thousands of American and Canadian jobs. This policy is both foolish and a failure in every regard."

U.S. tariffs came into effect Tuesday morning — 25 per cent on most Canadian goods, but 10 per cent on oil and gas products.

Prime Minister Justin Trudeau immediately announced retaliatory tariffs on $30 billion worth of American goods.

In her statement, Smith said Alberta "fully supports the federal response." She said she will meet with her cabinet Tuesday and Wednesday to discuss Alberta's response. Details will be announced Wednesday, she said. 

Earlier Tuesday, Smith was interviewed on CNBC about the tariffs.

"To see this escalation is so disappointing, so damaging initially to American consumers and American businesses who buy Canadian goods and raw materials," Smith told the U.S. cable news channel.

Americans and Canadians alike will feel the effects of the tariffs, Smith said.

"No one wins a tariff war," she said.

"I don't know why the president is behaving this way because it's illegal. We're going to challenge it and we would like to get back to negotiating some of the pressure points on that."

The tariffs come one month after Smith credited diplomatic efforts for helping Trump issue a temporary reprieve on the promised tariffs.

On Tuesday, Smith said Canada's premiers are standing united and will consider other retaliatory measures, such as replacing American goods with other sources within Canada and Mexico.

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"We don't want to get there," she said on CNBC. "I mean, we don't want to escalate, we don't want to retaliate, but we have no choice but to have an equal and proportionate response."

She said Americans need to understand that Canada is its best customer. "We buy more goods and services from you than anyone else in the world."

The tariffs means Canadians will just start buying less from the U.S., she said.

"It doesn't make sense to treat your biggest customer this way."

Efforts at the border

Smith told CNBC that Canada has putting up drones, helicopters and more personnel along its border with the U.S. to stop illegal immigration and cross-border trafficking of drugs.

"We've been stopping drugs, we've brought those numbers down," she said.

The Canada-U.S. Mexico Agreement has served the countries well, Smith said.

No retaliation on energy

Smith said she doesn't plan to impose counter-tariffs on U.S. energy products, noting that energy is essential for American consumers and American businesses.

Smith noted the 4.3 million barrels of oil a day that goes to the United States from Canada.

"We want to make sure that that flow continues, albeit it's going to be a little bit more expensive because of the 10 per cent tariffs."

In her statement, Smith said Alberta and Canada must tear down interprovincial trade barriers and fast-track the construction of resource projects, including pipelines and LNG facilities and critical minerals projects.

Canada must strengthen other international trade ties and "drastically increase military spending to ensure we can protect our nation," she said.

On CNBC, the premier expressed frustration that the tariffs have arrived in spite of all efforts to address all the issues Trump has raised.

"New issues keep on popping up, which suggests that we've got a president that actually doesn't want a deal," she said.

"So what that means is that we have to be prepared that this might not just be a one-week problem or a one-month problem, [it] might be a four-year problem. And four years is a long time."