Premier Scott Moe says Canada should avoid a broad-based dollar-for-dollar trade fight if President Donald Trump follows through on his threat to put 25% tariffs on Canadian goods on February 1.
Moe argued that wide-ranging retaliatory tariffs could hurt Canadians as much as Americans, disrupting important trade between the two countries.
Instead, Moe wants highly focused measures aimed at the “specific policy decision-makers” in the United States who are pushing for the new tariffs.
“They are not there to have an impact on the economy, they’re there to change the views, and really change the hearts and minds of specific policy decision-makers within the U.S.,” Moe told the media.
Trump threatened the possibility of a 25% tariff on Canadian imports starting February 1, raising the alarm on both sides of the border.
Canada is America’s largest trading partner, supplying a significant amount of America’s imported energy, raw materials, and goods.
While Moe supports a “Team Canada” approach alongside the federal government, he stressed that he would not back sweeping export tariffs on Saskatchewan products, such as potash and agricultural goods, or those from other provinces.
Moe said that type of move would escalate tensions and punish Canadian producers.
“We need to work together as sub-national leaders, as a national government, all of us as Canadians … to de-escalate the conversation, de-escalate any conversation around potential tariffs, not escalate that conversation,” said Moe.
Moe said he remains “hopeful” that negotiations might prevent U.S. tariffs.
Moe urged Saskatchewan businesses with American connections to reach out and make the case that levelling tariffs on Canadian goods would harm jobs, raise prices, and disrupt long-standing trade relationships.
Moe and other premiers took part in a virtual meeting with Prime Minister Justin Trudeau on January 22.
