Saskatchewan braces for fallout as U.S.-Canada trade war escalates

Saskatchewan is bracing for the economic fallout as the trade dispute between Canada and the United States intensifies. The breakdown of recent trade talks has placed numerous industries within the province at risk. Premier Scott Moe acknowledged the impending challenges, stating, “We need to recognize that things are going to get rough for Canadians and the North American economy.”

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We need to recognize that things are going to get rough for Canadians and the North American economy.

The escalating trade war involves significant tariffs, with the U.S. imposing 50 percent tariffs on up to $20 billion worth of Canadian goods. Canada has pledged to respond with dollar-for-dollar counter-tariffs on targeted U.S. products, set to take effect September 8. Premier Moe expressed support for Canada's retaliatory measures, noting the potential impacts on Saskatchewan's manufacturing, forestry, and honey industries. "We’re engaging on the impact of the president’s tariffs, engaging on what a suite of counter-tariffs could look like. Trying to ensure that they have a minimal impact of what they do and on Canadian businesses and Canadian families,” Moe stated.

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We’re engaging on the impact of the president’s tariffs, engaging on what a suite of counter-tariffs could look like. Trying to ensure that they have a minimal impact of what they do and on Canadian businesses and Canadian families.

Amidst these developments, the Saskatchewan NDP is urging the province to remove American alcohol from store shelves, aiming to create economic pressure at the negotiating table. Saskatchewan is one of the few provinces where American liquor remains widely available. However, some economic experts, like Jason Childs, an economics professor at the University of Regina, believe the immediate impact on Saskatchewan might be limited. Childs pointed out that key provincial exports such as potash, oil, and uranium are not currently targeted by the tariffs. Despite this, the province plans to engage with industry leaders to devise a path forward for sectors like manufacturing, as uncertainty looms over the duration and severity of the trade conflict.

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It’s about creating an economic pressure that can be bargained for at the negotiating table.