Mark Carney announced that export taxes remain an option should cooler heads not prevail, he told reporters yesterday.

An export tax is a levy on goods leaving a country, collected by the country of origin, and aimed at imposing a cost on foreign companies or governments. President Donald Trump first threatened Canada with tariffs last October over its porous border problem. 

Federal officials considered export taxes on valuable commodities like potash and oil under former prime minister Justin Trudeau, dating back to late 2024. Both have 10% border levies as of writing.

During a campaign stop in Halifax, Carney said that export controls or export taxes are “options for Canada.”

Trump has imposed 25% tariffs on Canadian steel and aluminum and has promised more. As Prime Minister, Carney would have to address this economic hit during the election campaign.

Alberta Premier Danielle Smith has publicly stated that export restrictions or export levies on petroleum would trigger a national unity crisis, and has voiced her opposition to such measures.

“Let me be clear… Alberta will never agree to such an absurd and self destructive idea,” reads a statement from Smith. “I’m not going to agree to do something that will cost hundreds of thousands of Albertans (and Canadians) their jobs almost overnight.”

A similar tax in the 1980s sent Alberta into a multi-year recession, quadrupling unemployment and costing the province $100 billion in revenue.

“[We] are not supportive in any way of export tariffs, whether that be electricity coming out of Manitoba, Quebec into the US or whether that be energy or potash products that are coming out of our province or Alberta."

Saskatchewan premier Scott Moe opposes broad retaliatory… pic.twitter.com/0UmJoQKQ3x

— Juno News (@junonewscom) February 3, 2025

Former prime minister Justin Trudeau urged Alberta to follow the “Team Canada approach” and adopt tariffs on energy exports. 

“Protect your jurisdiction, but country comes first,” he claimed. “Canada is a priority, and I don't believe in jeopardizing one sector or another.”

“It’s not an option,” Smith reiterated. Saskatchewan Premier Scott Moe was in agreement with his western neighbour. “Export tariffs on our own products… is exactly as ridiculous as it sounds,” he said.

“The fuel that comes from largely Saskatchewan and Alberta into U.S. refineries, it’s going to cost more. Thus will your groceries, thus will everything,” he told reporters last December.

Ottawa was also mulling export taxes on other valuable commodities, such as potash and uranium, which Moe did not find agreeable.

Mark Carney suggests his past dealings with President Trump and shared experiences in the private sector will benefit Canada in tariff negotiations. pic.twitter.com/ZKxhwV1siu

— Rebel News (@RebelNewsOnline) March 14, 2025

Premier Smith previously said the tariff threat was an “opportunity to correct the misguided direction of this country.” However, the Liberals have rebounded in the polls since prorogation.

The lack of communication between Trump and Carney, since the latter took office, signifies elevated tension during a critical period in Canada-U.S. relations. Carney met with European dignitaries instead last week.

Canada tried to arrange a call with Trump but was unsuccessful, according to an anonymous Globe and Mail source.

The Liberal leader was asked if his cabinet would meet with the Trump team to discuss upcoming tariffs. Carney speculated that Trump is waiting for the April 28 federal election results before engaging with Ottawa.

President Trump elaborates on his April 2nd reciprocal tariff plan, saying he can be "flexible" but generally won't make exceptions. pic.twitter.com/W1xvK8313j

— Rebel News (@RebelNewsOnline) March 21, 2025

Carney says Canada is “prepared for the worst” and has $125 billion in retaliatory tariffs ready if the U.S. imposes more. Ottawa has also prepared a tariff relief package from existing import dues collected this month.

Cabinet imposed nearly $30 billion in levies on March 12, following tariffs on Canadian steel and aluminum.

Trump said this week he may exempt some countries from tariffs but still plans to raise revenue through tariffs on others, but gave no indication on who would receive further reprieve.

“We’ll be announcing some additional tariffs over the next few days, having to do with automobiles, cars, and having also to do a little bit with lumber down the road – lumber and [semi-conductor] chips,” he said.

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