Alberta Premier Danielle Smith announcing the “Scrap the Cap” ad campaign on October 15, 2024 in Calgary. Photo by Alberta Newsroom/Flickr.

Alberta Premier Danielle Smith has made herself a central figure in Canada’s 2025 federal election. Smith’s attendance at a far-right fundraiser hosted by vocal supporters of US President Donald Trump drew attention to her appearance on a right-wing podcast where she seemed to suggest that Conservative Party leader Pierre Poilievre is “in sync” with the Trump administration. At the very least, Smith has revealed her own alignment with Trump’s agenda, and she is plainly offside with a large majority of Canadians, including on the Prairies. But Smith contends that she is speaking for Albertans and the province’s most important industry: oil and gas.

Oil and gas exports have become a divisive flashpoint in Trump’s relentless attack on Canada’s economy. While Ontario Premier Doug Ford said he would use an export tax on the province’s energy exports as a means of retaliating against Trump’s tariffs, Smith refused to do the same with Alberta’s fossil fuel exports. An export tax would put pressure on Americans by increasing the cost of energy imports. It would also generate revenue that could be used to offset the negative impact of tariffs. Importantly, it could also be used to eliminate the division Trump has tried to sow with a lower tariff rate on energy imports relative to other goods.

Economists can debate the strategy of using export taxes in response to this trade war.........

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