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Alberta awaits details as U.S. now promises reduced 10 per cent tariff on oil

CALGARY — Alberta Premier Danielle Smith and Canada's energy industry say they will await details before responding to the latest threat by U.S. President Donald Trump surrounding tariffs.
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Pumpjacks draw out oil and gas from a well heads as wildfire smoke hangs in the air near Calgary, Alta., on Sunday, May 12, 2024. THE CANADIAN PRESS/Jeff McIntosh

CALGARY — Alberta Premier Danielle Smith and Canada's energy industry say they will await details before responding to the latest threat by U.S. President Donald Trump surrounding tariffs.

Trump says he will impose a 10 per cent tariff on Canadian oil around mid-February after previously promising it would be 25 per cent as part of a blanket tariff on all Canadian exports that is set to begin Saturday.

Before that, Trump had promised the sweeping tariffs would come on his first day in office, Jan. 20. While the White House said the 25 per cent tariffs will go into effect on Saturday, details regarding Trump's plan for imposing tariffs on oil remain vague.

“I’m probably going to reduce the tariff a little bit on that,” he said when asked whether the tariffs would apply to Canadian crude oil. “I think we’re going to bring it down to 10 per cent on the oil."

Trump said there is nothing Canada can do to avoid the tariffs. "We're not looking for a concession. We'll just see what happens," he said.

In Alberta, where the majority of Canada's oil and gas sector resides, political and business leaders refrained from commenting on the president's latest announcement.

The Alberta premier's office said Smith "is waiting, along with everyone else, to see the details."

The Canadian Association of Petroleum Producers and the Explorers and Producers Association of Canada also said they will wait for specifics before commenting.

Trump has cited an "unprecedented invasion of illegal fentanyl" across the Canadian and Mexican borders, along with trade deficits with Canada, as his primary reasons for imposing the tariffs.

Smith has attempted to persuade Trump to back down on his tariff threats -- particularly by pointing to U.S. imports on Canadian oil and gas, the industry on which much of Alberta's finances relies.

Smith travelled to the president's residence in Florida prior to his inauguration through an invitation from Canadian businessman and television personality Kevin O'Leary.

Smith made headlines when she broke ranks with her fellow premiers and Prime Minister Justin Trudeau, who said Canada should be prepared to put every retaliatory measure on the table, including counter-tariffs on Canada's energy exports.

Smith said earlier this week that she has requested the Canadian government appoint a border czar to crack down on Trump's concerns.

"Is this likely to end the threat of tariffs entirely? I don't think so," she said. "I think there will be other things that we will need to work on, and we will do so.”

She also invited a team of Fox News reporters to the border in Coutts, Alta., to showcase the province's efforts on securing the Canada-U.S. border, and has made several appearances on Fox News over the past month. The network is known to be one of the president's favoured news channels to watch.

This report by The Canadian Press was first published Jan. 31, 2025.

Matthew Scace, The Canadian Press

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