Alberta is deeply entrenched in trade with the United States, making it the province's largest trade partner. Recent announcements from President-Elect Donald Trump regarding potential tariffs have raised serious concerns about the future of Alberta’s economy. In 2023, a staggering 89% of Alberta’s exports went south to the U.S., illustrating the province's heavy reliance on this pivotal market.

Last year alone, Alberta exported an impressive $156.3 billion to the U.S., with crude petroleum accounting for a whopping 73% of that figure—approximately $113.4 billion. However, with Trump set to impose a 25% tariff on all imports from Canada and Mexico on his first day in office, the implications for Alberta’s economy could be catastrophic.

In a bid to tackle illegal immigration and drug trafficking, particularly focusing on fentanyl, Trump has stated he will implement these tariffs unless both countries take significant action to curb these issues. In a recent post on his social media platform, Truth Social, Trump expressed his intention: "The tariffs will remain in place until we see reforms that secure our borders."

Alberta Premier Danielle Smith has responded promptly to this development, calling on the federal government to take Trump's administration seriously. In a letter addressed to Prime Minister Justin Trudeau, Smith highlighted the essential nature of the U.S.-Canada trade relationship for families and communities throughout the province, pressing for a First Ministers’ meeting to discuss urgent strategies for preserving this critical partnership.

Nationally, the U.S. remains Canada’s largest trading partner, accounting for a staggering $595 billion in exports in 2023, or 89% of the total. Experts warn that if tariffs take effect, it would not only threaten the Canadian economy but would also lead to increased prices for consumers on both sides of the border. Moshe Lander, an economist from Concordia University in Montreal, voiced his concerns, stating, “A blanket tariff would create a domino effect, impacting Canadian households and businesses alike.”

As a counterpoint, Alberta’s trade with China, while significant, pales in comparison, comprising only 3% of the province’s total exports—or around $5.5 billion. This shows just how reliant Alberta is on its southern neighbor for economic stability.

In light of the impending tariffs, Premier Smith reiterated the necessity for proactive discussions between the Canadian federal government and the incoming U.S. administration, emphasizing the importance of mitigating any potentially catastrophic impacts on Alberta's economy.

Stay tuned, as we continue to monitor the situation and bring you the latest updates on trade dynamics between Alberta and the United States. The stakes couldn't be higher—will Alberta navigate through this potential crisis unscathed or face an economic downturn?