“Canadians lose in that broader tariff war, that market access war, and I would say North Americans also lose.”
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Saskatchewan Premier Scott Moe says his focus is on de-escalating a potential trade war with the province’s — and country’s — biggest trading partner.
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“We are not looking at how we escalate the tariff discussion,” Moe said Wednesday, while speaking to reporters at the legislative building.
“It’s been Saskatchewan’s position from the very beginning that we need to work together.”
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U.S. President Donald Trump has threatened to impose a 25-per-cent tariff on all Canadian goods imported into his country.
The tariff was considered a mere possibility last week but, after less than a day back in office, Trump has indicated it may be closer to a reality as early as Feb. 1.
“We’re thinking in terms of 25 per cent on Mexico and Canada because they’re allowing vast numbers of people — Canada’s a very bad abuser also — vast numbers of people to come in and fentanyl to come in,” Trump said on inauguration day.
He also signed an executive order mandating U.S. federal agencies to study trade issues, including the alleged unfair trade and currency practices of Canada and Mexico, with a report due April 1.
“We are doing what we can to influence what the president’s decision might be,” said Moe, who noted that Saskatchewan is working with the federal government and other premiers on the matter.
Should Trump follow through, Moe says he supports targeted counter-tariffs.
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Although Moe would not elaborate on which products he’d be in favour of levying, he suggested they would make up a small portion of trade.
The premier noted he’s not in favour of retaliating dollar-for-dollar because it would be “hurtful” to the country as a whole.
Moe expressed hope that the proposed tariff would not come into force but, if it does, he said the goal will be to remove it as quickly as possible.
“Canadians lose in that broader tariff war, that market access war,” Moe said. “And I would say North Americans also lose.”
Saskatchewan trades with the U.S. to the tune of about $30 billion each year — approximately $27.6 billion worth of exports went south in 2023. Given that much of what Saskatchewan exports to the U.S. is crude oil, potash, grain and uranium, experts say local producers could have a tougher time competing in a much larger market.
A report from CIBC published on Tuesday estimates that, if implemented, a 20-per-cent tariff could result in a nationwide gross domestic product (GDP) decrease of 3.25 per cent, excluding commodities.
Saskatchewan NDP Leader Carla Beck said her party has been meeting with industry representatives in light of the uncertainty and businesses have been reaching out to their political connections south of the border in anticipation of tariffs.
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“This is a time, again, for all hands on deck,” said Beck, who — like Moe — noted the need for all levels of government in Canada to work together. “It’s time to take every measure possible when it comes to warding off these tariffs, these devastating tariffs.”
Beck made the point that tariffs would impact pocketbooks during a time when most people in Canada and America can ill afford higher prices. She suggested the province advertise directly to Americans about the impact of tariffs.
In addition to tariff threats, Trump has expressed concerns about border security and he claims the U.S. has a “$200-billion trade deficit” with Canada. It’s a deficit Moe has refuted, while also claiming there are more illegal drugs heading north than south along the Canada-U.S. border.
Moe recently announced the Saskatchewan Border Security Plan, which will deploy a group of 16 law enforcement officers to bolster security along the 49th parallel.
— with files from The Canadian Press
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