# Canada-U.S. trade dispute and Alberta response > Live situation record from CLSTR: https://clstr.news/situations/canada-us-trade-dispute-and-alberta-response > Updated: 2026-08-27T08:30:00.000Z. Sources: 17. Developments: 2. Alberta Premier Danielle Smith has responded to escalating trade tensions between Canada and the United States, characterizing recent U.S. trade actions as a ‘betrayal’ of the trust between allies. Smith warned that the use of energy as a weapon in these disputes could cause economic activity to reach a ‘grinding halt.’ Following the breakdown of trade talks, Smith advocated for diplomatic solutions over ‘brute force.’ She explicitly rejected proposals to use Alberta’s oil as a retaliatory tool against U.S. tariffs, calling the imposition of export taxes or the suspension of crude oil shipments a ‘disastrous policy decision.’ Smith argued such measures could result in significant job losses in Alberta and economic damage to other Canadian provinces, while potentially prompting the U.S. to cut fuel supplies to Eastern Canada or source oil from other nations. To mitigate the impact on domestic businesses, Smith proposed tax reforms, such as cutting capital gains taxes, reducing internal trade barriers, and accelerating West Coast pipeline approvals. ## Timeline ### 2026-08-27: Alberta Premier Danielle Smith rejects using oil as retaliation in U.S. trade war Alberta Premier Danielle Smith urges diplomatic solutions to the Canada-U.S. trade war and rejects using oil exports as retaliation, warning of severe economic consequences for Canada. 3 sources. https://clstr.news/cluster/alberta-premier-danielle-smith-rejects-using-oil-as-retaliation-in-us-trade-war ### 2026-08-25: Alberta Premier Smith condemns U.S. trade actions as betrayal Alberta Premier Danielle Smith condemned U.S. trade actions as a “betrayal” of allies and warned against using energy as a weapon in escalating trade wars. 14 sources. https://clstr.news/cluster/walker-industries-donates-100k-for-amherstburg-park --- Cite as: Canada-U.S. trade dispute and Alberta response. CLSTR, https://clstr.news/situations/canada-us-trade-dispute-and-alberta-response