While the United States announces new customs tariffs by 35 %, Saskatchewan is on the front line. If Prime Minister Scott Moe minimizes the impact of this decision, the opposition is concerned about an upcoming economic crisis.
The United States confirmed on Thursday the increase in customs duties on Canadian products, from 25 % to 35 %.
Saskatchewan Prime Minister Scott Moe was quick to react at a press conference. Although he expresses his disappointment, he tries to put the impact for the province into perspective.
Scott Moe minimizes the impact, but anticipates challenges
Scott MOE points out that 95 % of Saskatchewan exports to the United States escape these new prices, due to their compliance with the United States-Mexico (ACEUM) agreement.
However, he specifies that certain industries, such as steel industry, forestry and automobile, will be affected. The Prime Minister thus calls for continuous negotiations to protect these sectors.
Some industries will face sectoral challenges, and we must continue to negotiate to support them
said Scott Moe.
Mr. Moe also evokes a strong demand in Ottawa for the removal of certain federal regulations
Which, according to him, slow down the economic development of the province.
It also pleads for the construction of pipelines to facilitate the circulation of energy between the provinces.
I would say that our first step as Canadians is to reduce, or even remove some of the counter-triggers that we have set up.
Our argument, and what is happening today is that President Trump’s prices harm American families and American companies
indicates Scott Moe.
The opposition denounces devastating prices
Barely the declaration of Scott Moe made, the official opposition, led by the head of the NPDCarla Beck, reacted strongly.
According to her, the province must act quickly in the face of this threat. It proposes to remove the American alcohol again from the tablets, a measure already taken during previous trade tensions.
Americans are not only interested in our uranium and potash, they need it. We have major assets, but the American president must stop threatening us
insisted Carla Beck.
It also recommends that Saskatchewan favors local businesses for government contracts, and stresses the importance of taking advantage of the province’s strategic resources in this trade war.
Let us stop pretending to be a lever here. Let us show that we have character. This shows that we are not going to accept this without reacting.
According to Carla Beck, a head of the new Saskatchewan Democratic Party, the province must act quickly in the face of this threat and again withdraw the American alcohol from the shelves, a measure already adopted in previous trade tensions. (Archives photo)
Photo: Canadian press / Liam Richards
A province less dependent on the United States
Although the United States remains the main trading partner of Saskatchewan, the province has an undeniable asset: its commercial diversification.
In fact, around 45 % of Saskatchewan exports go to countries other than the United States, a figure much higher than that of other provinces such as Alberta, where only 10 % of trade goes to non-American countries.
Saskatchewan is one of the most diverse provinces in international trade. About 45 % of our trade concerns countries other than the United States.
Saskatchewan in the face of the urgency of diversifying its markets
To strengthen this position, the province has intensified its efforts by multiplying trade missions. In 2023, she went to India, Singapore and Vietnam to consolidate her economic relations with these strategic partners.
If the immediate impact of these customs tariffs seems limited for Saskatchewan, the situation could evolve. The province, whose economy is largely turned towards export, must continue to diversify to minimize the risks linked to commercial dependence with the United States, experts say.
The Saskatchewan is therefore at a turning point. If the customs tariffs of 35 % imposed by the United States may affect certain economic sectors, the province has the cards in hand to limit the damage.
The challenge will be to accelerate the diversification of its trade and strengthen its relations with international partners.
With the information of Julien Delfort, Luigi Wahmereungo Palmieri and Katie Swyers