Michael Joel-Hansen
Regina Leader-Post
Saskatchewan’s premier is echoing some major provincial business leaders about the impact tariffs could have on American consumers.
Scott Moe said if tariffs are imposed by the Trump administration on March 4, the first people who will notice will be those living in the United States.
“The very first impacts will be observed by an American family that’s fuelling up their vehicle at the pumps,” Moe said. “Second, they’ll notice it at the grocery store, because that very fuel is used to get the products to the grocery store.”
Moe spoke to media Friday morning at the Saskatoon Cabinet Office, fresh off a trip to Washington D.C. where he met with law and policy makers to discuss the impact tariffs could have on the economies of both countries.
During his remarks Moe said 90 per cent of potash used by United States midwestern farmers comes from Saskatchewan, which will put those farmers on the hook for the additional costs. This same sentiment was shared by Nutrien Ltd. chief executive Ken Seitz when he spoke at a recent mining conference in Florida.
Moe said farmers in that part of the U.S. are not in a position where they can easily replace Saskatchewan potash, nor are their friendly countries able to do so.
“It’s very difficult to one, get potash from another (country) into the midwest, and two, the next area you’d be looking at is Russia,” he said.
Power consumers in certain parts of the U.S. could also be impacted if tariffs are placed on Saskatchewan uranium, which will drive up the cost of power for many.
“One in 17 homes in the U.S. is powered by Saskatchewan uranium,” said Moe.
These sentiments were echoed by senior leadership from Cameco Corp. On the company’s most recent earnings call, chief executive Tim Gitzel said the uranium producer is prepared to deal with tariffs and has also developed contracts which ensure that expenses like tariffs fall on purchasers.
When it comes to the economic impact for people in Saskatchewan, Moe said there could be some impact on the employment front.
“You will see some job loss in certain industries, in select industries, and that’ll likely show up on both sides of the border,” he said.
Moe said maintaining free trade between Canada and the U.S. would allow both economies to remain strong. He added that during the most recent trip to the American capital, there were productive conversations with U.S. leaders.
“We had some good engagement with senators, with secretaries, with congressman as well as with many others on the periphery of the Washington D.C. decision making circle,” he said.
While meeting with U.S. leaders, Moe said he observed an understanding that tariffs would likely lead to higher costs for consumers. However, he added that U.S. leaders are concerned about the trafficking of illicit drugs, specifically fentanyl, across the border. The recent trip to D.C. provided the chance to talk with U.S. lawmakers about the work being done to combat the problem.
“Many are, but not all are informed of the investments that yes, our federal government has made, but also informed of the investments provincial governments have made as well,” said Moe.
— With Canadian Press files
