As Trump renews tariff threat, Alberta premier calls for diplomacy not retaliation

As U.S. President Donald Trump renews his tariff threat, Alberta Premier Danielle Smith says diplomacy, not retaliation, is the best way for Canada to stifle the risk of punishing new trade sanctions.

Smith held a virtual news conference on Tuesday to share her reaction to Trump's inauguration day — a return to the White House which triggered new concerns surrounding the threat of steep tariffs on Canada.

"We were very pleased that we got a day-one reprieve," Smith told reporters Tuesday.

"We have a short window, I think, to demonstrate the very positive relationship that Canada and the U.S. have from a tariff-free point of view and why it should remain tariff-free.

"Our best approach now would be to focus on diplomacy and refrain from talk of any kind of retaliatory measures."

Trump did not follow through on his promise to impose the tariffs on his first day in office but did rekindle his threats to make the new trade penalties a reality.

As Trump signed a stack of executive orders Monday, the returning president suggested his administration would move ahead with 25 per cent tariffs on Canadian and Mexican imports by Feb. 1.

Trump told reporters the sweeping tariffs were necessary due to "vast numbers" of illegal immigrants and fentanyl coming into the U.S. from north and south of the American border, describing Canada as a "very bad abuser." 

The punishing tariffs would be imposed on everything imported from Canada.  In return, the Canadian government has pledged to impose retaliatory tariffs of its own on U.S. goods entering Canada.

Smith said she was pleased that Trump had decided to refrain from immediately imposing the tariffs but said the threat is still very real.

She said Canada should be promoting cross-border trade and maintaining strong relations with the U.S. Smith said Canadian political leaders must come together to preserve and strengthen our ties with the United States.

Part of Smith's proposed defence strategy would include new measures to double down on border security and policies to "crack down" on "immigration streams and loopholes"  that provide "hostile" individuals access to the states. 

She said Canada must also determine how to limit internal trade barriers between provinces to ensure it is less reliant on a single trade partner.

Smith spent inauguration day in Washington, in what is expected to be the final leg of an American trip. She and other Canadian leaders have banded together to campaign against the sweeping sanctions and Smith has taken a hands-on approach, meeting with government leaders and Trump himself.