Canada is the largest foreign energy provider to the United States, supplying 60 per cent of American oil imports last year
Premier Danielle Smith doesn’t think Canadian oil and gas will face a Trump tariff once the former U.S. president returns to the White House next year.
But that isn’t stopping Alberta from doing the groundwork to ensure that doesn’t happen, such as teaming up with like-minded U.S. Republican governors on energy, or the premier heading to Washington, D.C., during the presidential inauguration in January.
On Thursday, Alberta became the first foreign jurisdiction to join the Governors’ Coalition for Energy Security, a recently formed group of 12 U.S. states that promotes energy affordability and security.
“They offered the invitation and we’re happy to join,” Smith said in an interview.
“We want to make sure that Americans understand that we are their closest friend and ally and trading partner, and that — in our trade negotiations, which are set to begin in 2026 — we really have to prioritize that relationship with the Americans.”
The group was founded in September by Louisiana Gov. Jeff Landry and New Hampshire Gov. Chris Sununu — along with several other Republican governors — and was initially called the Governors’ Coalition for Energy Choice.
It was intended to promote “continued energy choice, minimize permitting and other regulatory barriers, limit expensive energy mandates,” and focus on the affordability and reliability of energy infrastructure.
This aligns with Alberta’s approach to oil and gas development, and Smith’s aspirations to potentially double production.
The invitation to join the coalition came following conversations between James Rajotte, Alberta’s senior representative to the United States, and Louisiana officials.
“Our mission as an organization has not changed, but Alberta’s welcome arrival to our group sparked a conversation about what our core mission is, and that is ensuring energy security in all its forms,” Landry said in a statement.
Canada is the largest foreign energy provider to the United States, supplying 60 per cent of American oil imports last year, up from a third a decade earlier.
Smith expects the coalition members will meet in February.
Alberta’s premier has several trips to the U.S. planned in the coming months. She will attend the Western Governors’ Association in Las Vegas in December, and go to the inauguration in Washington, D.C., on Jan. 20.
It’s part of a broader outreach effort as Alberta and other provinces — and the federal government — prepare for the new Republican administration and a mandatory review of the Canada-United States-Mexico Agreement (CUSMA) in 2026.
“We export more (oil) to the U.S. than Saudi Arabia, Mexico and Iraq combined . . . We will meet with as many decision-makers as we can to get that message out,” Smith said of the inauguration trip.
“We’re prepared to spend a few days there, just building those relationships with the new administration.”
Trump vowed during the campaign to introduce a broad 10 per cent tariff on all imports into the United States, which could have significant repercussions for Canada and its single-largest export: energy.
Oil and gas made up about 82 per cent, or $134 billion, of Alberta’s exports to the United States last year.
“I’ve been watching what the U.S. has been saying about their concern that Mexico is hollowing out the manufacturing sector, partnering with China, and they are looking at that in a very negative light. We don’t want to be lumped in the same kind of approach,” Smith said.
“Americans understand that having a supply of oil and natural gas that allows them to deliver lower gasoline and diesel prices to their citizens is a good thing . . . I’m not worried about tariffs on oil and gas products, but we’ve got to make that case very clear to the Americans.”
Business leaders and trade experts are paying close attention to the discussion, as tariffs would penalize the Canadian economy.
It’s important that Canada’s premiers look to build relationships with their counterparts in the United States during this pivotal period, said Fen Hampson, an international affairs professor at Carleton University.
It makes sense for Alberta’s premier to join the governors’ energy coalition and travel to Washington, he said in an interview.
“It’s very much in the interest of Albertans that she do so,” to develop a relationship with the new administration and to meet incoming Senate majority leader John Thune of South Dakota, Hampson said.
“They’re Republicans. They will have the ear of the president. They’re a major constituency. You never want to go alone to Washington if you have allies who can help you make your case.”
Business groups and think-tanks are also preparing for the new Trump administration and upcoming review of the free-trade deal.
The Business Council of Alberta, Canada West Foundation, Calgary Economic Development, Canadian Global Affairs Institute and Calgary Chamber of Commerce have jointly submitted recommendations about CUSMA to the federal government.
The Alberta group is touting harmonized trade regulations and identifying key priority areas in the upcoming discussions, such as energy security, agriculture and promoting an integrated supply chain for critical mineral development.
“We just want to make sure our voices are heard,” said Brad Parry, CEO of Calgary Economic Development.
Yet, Canada will face a challenge to avoid the pain of possible protectionism imposed by its largest trading partner.
“We’re definitely concerned about the possible imposition of this minimum 10 per cent blanket tariff,” said Business Council of Alberta vice-president Mike Holden.
“There is a lot at stake, but I think also there are a number of opportunities in areas where we can work with the U.S., to make sure that doesn’t happen.”
Chris Varcoe is a Calgary Herald columnist.