As U.S. President Donald Trump renews his tariff threat, Alberta Premier Danielle Smith says diplomacy, not retaliation, is the best way for Canada to stifle the risk of punishing new trade sanctions.

Canada’s outgoing prime minister and the leader of the country’s oil rich province of Alberta are confident Canada can avoid the 25% tariffs President Donald Trump says he will impose on Canada and Mexico on Feb.

Trump said in an Oval Office signing ceremony on Monday that his administration will impose a 25% tax on goods from Canada and Mexico that may come as soon as February 1 – a move that could raise prices for American consumers.

President Trump opted against deploying a blanket tariff against U.S. trading partners, but kept the heat on Canada and Mexico.

President Donald Trump stopped short of imposing tariffs on Canada on day one but said they may come as soon as 1 February.