Smith warns retaliatory tariffs could raise farm equipment costs 50%
Canada and the U.S. are locked in a fresh tariff standoff after Ottawa suspended trade talks, drawing mixed reaction from provincial leaders including Alberta's premier.
Why it matters
Higher retaliatory tariffs could raise costs for Alberta farmers who rely on imported equipment to grow and produce food.
Prime Minister Mark Carney suspended trade talks with the United States after Washington imposed new 50 per cent tariffs on $28 billion worth of Canadian goods on Saturday, including hockey sticks, honey, essential oils and dairy products. Carney said Canada will respond with dollar-for-dollar counter-tariffs starting next month, targeting sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, with further details expected in coming days.
Reaction across the country has been mixed. Ontario Premier Doug Ford and B.C. Premier David Eby voiced full support for a strong, matching response, while Saskatchewan Premier Scott Moe backed the counter-tariffs but cautioned that "all tariffs hurt real businesses and kill real jobs, on both sides of the border."
Alberta Premier Danielle Smith struck a more cautious tone, warning that retaliatory measures could force Canadian farmers to pay 50 per cent more for the equipment they need to produce food. The Canadian Steel Producers Association and Brampton, Ont., Mayor Patrick Brown both backed Carney's decision to walk away from what he called a "bad deal," with Brown noting more than 3,000 workers remain jobless after Stellantis paused plans to retool its Brampton plant for Jeep production.
U.S. President Donald Trump criticized Canada on social media early Sunday, accusing it of wanting "the benefits of being a State, without being one" and of overcharging American farmers on tariffs. Carney described a last-minute U.S. push to restrict Canada's ability to strike other trade deals as a "power play" tied to sovereignty.
Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.