‘We panic’: Smith offers insights into deal with Donald Trump and trade threats

Alberta Premier Danielle Smith believes that reacting with panic to U.S. President Donald Trump's tariff threats is counterproductive. Speaking at the New North America Summit in Calgary, Smith described Trump's approach as a strategic business tactic.

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He always had a plan A, a plan B and plan C, all of which benefited him.

"He always had a plan A, a plan B and plan C, all of which benefited him," Smith said Monday. "He has his moon shot, but he also has a ‘this is pretty good’ and then he has an ‘I’ll settle for this.’"

Smith suggested that negotiators should recognize this as a negotiating style rather than a cause for alarm. She observed that excessive reactions and commentary often follow Trump's initial demands, but this is a predictable part of his process. The premier indicated that a more settled approach can lead to win-win outcomes, emphasizing that the U.S. will always seek to avoid feeling disadvantaged.

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He has his moon shot, but he also has a ‘this is pretty good’ and then he has an ‘I’ll settle for this.’

During her address, Smith also discussed ongoing trade concerns, including the future of the Canada-U.S.-Mexico Agreement (CUSMA). Trump recently expressed reluctance to renew the deal, which is up for a 16-year extension by a July 1 deadline. She also highlighted the U.S. opposition to Canada's Goods and Services Tax (GST) and other value-added taxes, which Americans perceive as tariffs on their goods.

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I think we’re now beginning to settle down and realize there is a way for us to get to a win-win but the Americans are never going to agree to a deal where they feel they’ve lost ground.

Smith, who met Trump twice in 2025, suggested that relations with the U.S. have improved under Prime Minister Mark Carney compared to the previous administration. She also noted that the U.S. objection to national sales taxes stems from their absence in the United States, creating a perceived imbalance.

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They really, really hate national sales taxes, value-added sales taxes, because they do not have a national sales tax in the United States.