EDMONTON - Alberta Premier Danielle Smith's government has announced a pause on its recently declared procurement policy, which was designed to combat U.S. President Donald Trump's tariffs. This decision comes after the Trump administration placed a hold on any further tariff actions, leading to a reassessment of Alberta's retaliatory measures.

Service Alberta Minister Dale Nally stated that Alberta is taking this step "in the spirit of diplomacy." Initially, the province's procurement policy aimed to restrict purchasing goods and services from U.S. companies, a move prompted by what Smith described as a "broken trust" with the United States. This policy was set in motion over a month ago in early March, at a time when tensions between Alberta and the U.S. were escalating due to trade disputes.

Despite the pause on the wider procurement policy, Nally confirmed that Alberta will maintain its ban on purchasing American liquor and video lottery terminals. This aspect of the policy is expected to remain in place until a new North American Free Trade Agreement can be renegotiated, indicating that Alberta is not completely retreating from its initial stance on U.S. imports.

Additionally, this week, Alberta has launched an advertising campaign aimed at encouraging consumers to "buy local." This initiative reflects a broader effort by the provincial government to bolster local economies and businesses in light of the ongoing trade tensions with the U.S. By promoting local products and services, Alberta aims to mitigate the impact of U.S. tariffs and encourage residents to support home-grown enterprises.

The decision to pause the procurement policy and the continuation of the ban on specific U.S. goods underscore the delicate balance the Alberta government is trying to maintain in its trade relationships. The government is cognizant of the need for economic stability while also standing firm on its positions relating to international trade agreements. The impact of these policies and the overarching trade negotiations will be closely watched by both businesses and consumers in Alberta as they strive for a sustainable economic future.

This report highlights the ongoing challenges and strategic decisions being made by provincial governments in the face of changing international trade dynamics. The actions taken by Alberta reflect a cautious approach, aiming to preserve diplomatic relations while also protecting local industries against perceived threats from foreign tariffs and trade practices.