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

The latest turn in the Canada-U.S. trade war is putting more industries on edge.

Many in Saskatchewan are still digesting the news after trade talks recently broke down, putting industries at risk in this province.

“We need to recognize that things are going to get rough for Canadians and the North American economy,” said Premier Scott Moe.

It’s the latest twist in a trade war heating up between Canada and the U.S., with 50 per cent tariffs on to $20 billion worth of goods being imposed as of midnight Friday.

In response, Ottawa is promising to enact dollar for dollar counter-tariffs on targeted U.S. products. Those measures are set to take effect Sept. 8.

Premier Moe said he supports the move, with the impacts set to be felt in the Saskatchewan manufacturing, forestry and even the honey industries.

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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,” said Moe.

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As the province focuses on that, the Saskatchewan NDP is focusing on booze, calling on the province to remove America alcohol from Saskatchewan store shelves.

Saskatchewan is one of two provinces where American liquor is still widely available, the other being Alberta.

“It’s about creating an economic pressure that can be bargained for at the negotiating table,” said Kim Breckner, shadow minister of trade and export development.

Saskatchewan Liquor and Gaming Authority shadow minister Don McBean agreed.

“The rest of Canada looks at Saskatchewan and say, ‘Why aren’t you on the team?'”

So how much does this latest episode in the ongoing trade war change the game for Saskatchewan overall?

“For Saskatchewan, I don’t think that much,” said Jason Childs, economic professor at the University of Regina.

Childs says a lot of what Saskatchewan produces has been carved out of this tariff war so far.

“The U.S. generally isn’t interested in tariffing potash, or oil, or uranium. Those things are not where they want to focus,” Childs said.

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As for industries facing the biggest pressure, like manufacturing, the province says it will engage industry leaders through roundtables this week to figure a path forward.

But with no clear end in sight, many are waiting to see how far this latest trade fight will go and how seriously they will be impacted.