Former trade rep says Alberta undermined Canada as Trump warns of failed-state status
By Canadian Press on January 24, 2025.
OTTAWA — Ottawa’s former chief trade negotiator Steve Verheul says Alberta is undermining Canada’s attempts to prevent the U.S. from levying damaging tariffs — a measure U.S. President Donald Trump has said could drive Canada into “failed state” status.
Prime Minister Justin Trudeau has rallied most of the premiers to agree that all sectors of the Canadian economy could be deployed to fight back against Trump’s plan to impose 25 per cent tariffs on all imports from Canada.
Alberta Premier Danielle Smith disagrees. She has said that Canada should not threaten the U.S. with retaliatory tariffs or cutting off energy exports, and should focus instead on finding common ground.
Earlier this week, Verheul attributed Canada’s successful renegotiation of NAFTA during Trump’s first presidency — which culminated in the Canada-United States-Mexico Agreement (CUSMA) — in part to the coherent message coming from the provinces, industry and Ottawa.
“When they all briefed up, the messages were the same and it was much easier to do it that way,” he told the Toronto-based Empire Club on Tuesday.
“There is a very strong sense of unity among all of the premiers at this point — with the one exception of Alberta.”
Verheul said that Canada’s leaders must try to get Alberta’s government “on board too. Because the fact that Alberta has gone in a different direction through these last few weeks has significantly undermined Canada’s position.”
For now, Canada is in “damage control” mode, he said.
Smith’s office has not responded to a request for comment.
Since Verheul made his remarks Tuesday, other premiers have pushed back on the federal position on tariffs.
Saskatchewan Premier Scott Moe said Wednesday he had “an issue with” putting tariffs on energy exports. That same day, Quebec Premier François Legault suggested such measures should be deployed only with the provinces’ consent.
On Friday, Trump again said that Canada should become an American state, adding “it’s sort of crazy” to suggest the U.S. needs Canadian imports.
Trump said he told Trudeau earlier that the U.S. is subsidizing Canada to the tune of billions of dollars, and claimed Trudeau said that if those subsidies stopped, Canada would be “a failed nation.”
The president insisted Canada would have “better health coverage” and “wouldn’t have to worry about military” as an American state, adding that Canada has been “very nasty to us on trade.”
Experts have said that Canada’s trade imbalance with the U.S. largely stems from Canada’s energy exports. They also say it’s wrong to think of this as a subsidy — particularly as Trump offers wildly diverging estimates of its size.
Asked about Trump’s remarks, Defence Minister Bill Blair said his “unfortunate rhetoric” is “offensive to us” and “Canada will never be a failed state.”
Liberal leadership contestant Chrystia Freeland, who helped steer the NAFTA renegotiations, said Canada would “absolutely not” become a failed state if Trump’s threatened tariffs take effect.
— With files from Kyle Duggan
This report by The Canadian Press was first published Jan. 24, 2025.
Dylan Robertson, The Canadian Press
24-23
I do not believe you are much of an expert if you cannot read Donald Trump and understand that getting into a trade war with him will fail and fill our economy and Alberta’s economy thanks to landlocking previous oil and gas deals with other countries, such as Japan’s request for LNG, or some of Europes requests for LNG which Trudeau said no!
The US is very cozy with the Saudi’s right now, with them investing $600 billion in the US, so the US could easily replace Alberta’s crude, not to mention buying from African and Couth American countries, which they already do, who supplies heavy crude the refineries in the US use to refine Canadian crude. The US could easily shutdown the pipelines flowing into the US.
Trump would hold a massive grudge against Canada and we cut share defense of the Arctic, with the US having subs which can go under Arctic ice, something Canada does not have. We are vulnerable security wise and the Liberals have bankrupt our military, our border services and sold out parts of our sovereignty in trade deals, all the time expecting the US to protect us and be our friend, economically.
Trump has seen the weakness and he is circling as a shark, knowing the resources, inluding fresh water, the US wants. He may try to take the Actic at the very least, but wants Canada and Mexico!
We will lose in a trade and tariff war and we are already facing a debt wall!
“Failed state” comment came from Turdo in response to Mr. Trump. If the US military wasn’t around to support Canada , we would we really screwed in a conflict. The Canadian military would struggle to fight it way out of a proverbial wet paper bag.