Former Alberta premier Jason Kenney has urged the federal government to consider using oil and gas exports as leverage against the United States, criticising Prime Minister Mark Carney’s current strategy as economically self-defeating.
In a pointed interview this week, Kenney argued that Canada holds significant sway over the American economy through its energy exports and should not hesitate to use it. His remarks come as tensions between Ottawa and Washington continue to simmer over punitive tariffs imposed by US President Donald Trump.
“You don’t deal with an aggressive attack on your economy by starting with listing all the things you will not do in reprisal,” Kenney said. “That makes no sense.”
Oil and Gas: A Double-Edged Sword
Kenney acknowledged that completely cutting off energy exports to the US is not feasible, given that central Canada depends heavily on oil transported via American pipelines. However, he suggested that targeted export taxes or restrictions could send a strong signal without severing vital supply chains.
“The Americans would be extremely sensitive to export taxes on things like fuel and potash,” Kenney noted. “That would affect Republicans who drive F-150s and lay fertilizer on their farm fields.”
He warned that if the US escalates its trade measures, Canada must be ready to respond decisively. “Let it be known we’re prepared to defend ourselves,” he said.
Alberta’s Stance: No Energy Retaliation
Alberta Premier Danielle Smith has maintained that oil and gas will remain off the table in any retaliatory measures. In a statement, she reiterated her belief that targeting the energy sector would ultimately harm Canadians more than Americans, undermining efforts to protect domestic industries hit by US tariffs.
“Counter-tariffs increase costs, and hurt businesses and workers,” Smith said. “We should do all we can to avoid further escalation.”
Smith has called on the federal government to return to the negotiating table with the US rather than pursue economic confrontation.
Federal Countermeasures and Interprovincial Tensions
Prime Minister Mark Carney’s government has rolled out a series of counter-tariffs aimed at matching US duties on roughly $28 billion worth of Canadian goods. While some provinces support a tougher stance, others — notably Alberta — have expressed concern over the potential fallout from aggressive trade tactics.
Ontario Premier Doug Ford, meanwhile, has signalled willingness to restrict critical exports such as electricity and minerals to the US. But he stressed that coordinated action across provinces is essential. “I need every premier playing on team Canada,” Ford said.
Alberta’s opposition NDP leader, Naheed Nenshi, criticised Smith’s approach, accusing her of weakening Canada’s negotiating position. “Her loyalties are at best divided,” Nenshi said. “Every action she takes publicly strengthens the bargaining position of the United States and of Donald Trump.”
Jobs vs Strategy: The Domestic Debate
Alberta’s energy sector employs tens of thousands of people, with oil exports to the US valued at nearly $111 billion in 2025. The province’s budget relies significantly on oil royalties, making any disruption to exports a sensitive political and economic issue.
Jobs Minister Joseph Schow defended the provincial government’s cautious approach, warning against actions that could jeopardise those jobs. “The families whose livelihoods depend on the jobs in this industry deserve certainty that their government has their back,” Schow said in a social media post.
Nenshi has pushed for Alberta to reinstate a ban on American alcohol imports, arguing it carries minimal economic cost while sending a symbolic message. “There’s no cost to the Canadian economy,” he said. “The only cost is to Danielle Smith’s pride.”
Smith, however, has refused to change course, citing consumer choice. “We believe also in choice,” she said. “We trust that Albertans can make their own decisions.”
Why it Matters
This internal divide within Canada over how to respond to US trade pressure highlights the delicate balance between defending national interests and protecting local economies. With midterm elections looming in the US, the outcome of this trade dispute could reshape North American economic relations for years to come. For Canada, the challenge lies in presenting a united front while safeguarding the livelihoods of millions of citizens dependent on cross-border commerce.
