By The Canadian Press

Smith says she sees a ‘breakthrough’ in talks with Americans on energy

Jun 4, 2025 | 2:44 PM

WASHINGTON — Alberta Premier Danielle Smith said on Wednesday there’s been a “breakthrough” in conversations with Americans on Canada’s role in the United States’ quest for energy dominance as President Donald Trump’s tariffs continue to cause uncertainty for the bilateral relationship.

“We’ve managed to make a breakthrough on the discussion about energy dominance and how Canada can lend itself to that, whether its our oil, our gas, critical minerals, uranium from Saskatchewan, electricity from many of our provinces,” Smith said in an interview with The Canadian Press at the embassy in Washington, D.C.

“I feel like there’s a real understanding of that.”

Trump returned to the White House set on boosting America’s energy production. Smith said that while the energy argument has seen success, conversations around other industries are ongoing.

The Alberta premier was in the United States capital for meetings and a forum on energy this week as Trump doubled his tariffs on steel and aluminum imports. Canada is a major supplier to the U.S. and Canadian industry says 50 per cent levies will be devastating.

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Smith said she had conversations with American counterparts and explained that, particularly for aluminum tariffs, they are “the very definition of a tariff being its own punishment.”

The United States imports about 60 per cent of its aluminum from Canada. The Canadian industry largely uses hydroelectricity to make the high energy costs connected to smelting more affordable. Smith said the U.S. doesn’t have the ability to develop a homegrown industry to fill the gaps.

“We just have to make sure we are able to make that same (energy) argument on everything else, on the integrated food market, the integrated manufacturing market,” Smith said, also pointing to timber. “(We) haven’t had a full breakthrough on all of that but I think the conversations I have are always very positive.”

Despite conversations at home about Western alienation and Alberta separatism, Smith said that issue has not come up in Washington. The premier, however, said it’s important to take the issue seriously.

Trump set his sights on Canada early in his return to the White House and his tariffs on steel, aluminum and automobiles have upended Canadian industries. The president has repeatedly said he doesn’t need anything from Canada but his actions have shown signs that he still values trade with America’s northern neighbour.

Trump slapped Canada with economywide duties in March, only to walk back the tariffs on imports complaint with the Canada-U.S.-Mexico Agreement on trade, called CUSMA, a few days later.

Commerce Secretary Howard Lutnick was asked during a U.S. Senate hearing Wednesday about tariffs on Canada. Lutnick pointed to the trilateral agreement and said imports that are compliant with CUSMA remain tariff-free.

CUSMA was negotiated during the first Trump administration and was up for a mandatory review next year.

Smith said it remains unclear when CUSMA negotiations might start but there is “encouragement or expectation that we might get some kind of detente or interim agreement by the time we have the G7.”

It’s unclear whether that will be commitments on CUSMA or a separate agreement on the current tariffs. Carney has said Canada will negotiate a new economic and security agreement with the United States.

Canada-U.S. Trade Minister Dominic LeBlanc, who met with Lutnick in Washington Tuesday, said he’s “hopeful that we can get to the best outcome for Canadians.”

Carney and Trump will join leaders from France, Germany, Japan, the United Kingdom, Italy and the European Union from June 15 to 17 for the G7 leaders summit in Kananaskis. Mexican President Claudia Sheinbaum has also been invited to attend.

Smith said it “just makes so much sense for Canada and the U.S. to get to an agreement fast.” She said Americans have “bigger fish to fry” on other major policy priorities.

Smith was optimistic about Carney’s relationship with Trump. While the president recently brought back comments on making Canada a U.S. state, Trump has also spoken about a good relationship with Carney and calls him prime minister and not the “governor” title he used to taunt former prime minister Justin Trudeau.

It also marks a change in tone for the Alberta premier, who had an icy relationship with Ottawa under Trudeau.

Smith has long been critical of the governing Liberal’s policies around energy which she says micromanaged Alberta’s priorities and hindered industry. She said federal policies stopped Alberta from developing foreign markets that would be critical for many Canadian industries as Trump tries to realign global trade through tariffs.

Following the First Ministers’ meeting in Saskatoon earlier this week, Smith said she is “hoping that we are having a breakthrough with the Liberals way of seeing things.”

Smith had proposed a bitumen pipeline to B.C.’s northern coast coupled with support for a project on decarbonization. She said “if we can work together on developing new markets then I think it will be good for everyone.”

B.C. deputy premier Niki Sharma has pushed back on Smith’s proposal, saying the province is focusing on “shovel-ready projects, not theoretical projects with no proponents.”

This report by The Canadian Press was first published June 4, 2025.

Kelly Geraldine Malone, The Canadian Press