President Donald Trump’s 25% tariff could send shockwaves through Saskatchewan’s economy, according to Premier Scott Moe at a press conference on Monday.
Moe urged the federal government to follow Mexico’s lead and negotiate a “temporary reprieve” to protect Canadian businesses, families, and workers.
Moe said Saskatchewan exports “nearly $50 billion worth of products each year, with $30 billion going south of the border.”
A 25% tariff on these goods could batter key industries and raise prices for consumers.
Moe cautioned that everyone needs to take Trump “seriously but not always literally.”
Talk also turned to border security and the Trump administration’s focus on reducing illegal migration.
Ottawa has increased funding for enforcement along the border, but Moe suggested that the Canada Border Services Agency should be brought under “military control” to deal with the “ongoing security concerns.”
Moe talked about drug enforcement, with fentanyl as a major threat on both sides of the border.
Saskatchewan has invested in law enforcement to fight trafficking and addiction, aligning with Trump’s commitment to curbing opioid-related deaths in the U.S.
Saskatchewan has already eliminated trade barriers at the provincial level and encouraged the rest of Canada to do the same.
However, retaliatory tariffs may be unavoidable if negotiations fail.
Moe acknowledged that energy and potash exports are critical for both countries, warning that an “escalating trade war would hurt the entire North American economy.”
Republican U.S. Senator Charles Grassley (Iowa) urged Trump on Monday to consider exempting potash, a potassium-rich mineral crucial for fertilizer production.
Grassley wrote on Twitter/X that farmers are struggling to cope with the high fertilizer prices, which he attributed to “Biden inflation,” and are unable to withstand further financial pressure
“Biden inflation increase the input cost to farming by 20% incl(uding) particularly high prices on fertilizer. So I plead w(ith) President Trump to exempt potash from the tariff because family farmers get most of our potash from Canada,” tweeted Grassley.
In the end, Moe called for “swift, strategic diplomacy.”
With Mexico having secured a delay on tariffs, Moe believes “Canada can achieve a similar outcome.”