The tariffs have already led to a surge in support for Canadian products and businesses. (THE CANADIAN PRESS/Ethan Cairns)

By CKOM News Staff

Saskatchewan braces for trade war as U.S. tariffs take effect

Mar 4, 2025 | 11:03 AM

U.S. President Donald Trump imposed his long-threatened tariffs at 12:01 a.m. on Tuesday, adding a 25 per cent levy to Canadian and Mexican imports, along with a lower 10 per cent tariff applied to Canadian energy.

Calling Trump’s decision “unjustified,” Prime Minister Justin Trudeau announced retaliatory tariffs later on Tuesday morning, officially kicking off a trade war between the two nations.

Prime Minister Justin Trudeau said Canada’s retaliatory tariffs also took effect on Tuesday morning, kicking off a trade war between the two nations.

“Canadians are reasonable, and we are polite, but we will not back down from a fight. Not when our country, and the well being of everyone in it, is at stake,” Trudeau said at a news conference Tuesday.

“Canada will be implementing 25 per cent tariffs against $155 billion worth of American goods, starting with tariffs on $30 billion worth of goods immediately.”

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Trudeau said the counter tariffs will stay in effect until the American tariffs are withdrawn, “and not a moment sooner.”

The prime minister said Canada will be filing dispute resolution claims with the World Trade Organization, and noted that Ottawa is also working with provincial and territorial governments on other “non-tariff” measures in response.

“There are no winners in a trade war,” Trudeau added.

Moe says Saskatchewan considering its own response to tariffs

Saskatchewan Premier Scott Moe has made multiple trips to Washington, D.C. in recent weeks in an effort to head off the tariffs, and announced a suite of new measures aimed to assuage Trump’s concerns about the cross-border traffic of fentanyl, but it’s still not clear exactly what concessions the president will require in order to drop the tariffs.

On Monday, Moe said Saskatchewan is considering its own provincial response to the levies.

“We remain committed to free and fair trade between Canada and the U.S., but should the U.S. proceed with an ill-conceived tariffs policy, we will have no choice but to defend Saskatchewan industries and families,” the premier told reporters.

Moe has touted the importance of Saskatchewan products to the United States, particularly uranium and potash, and argued that Americans will quickly start to feel the impacts of the trade dispute at the gas pumps and grocery stores.

“Ninety per cent of potash that is used by American farmers comes from the province of Saskatchewan,” Moe noted.

“One in 17 homes in the U.S. is powered by Saskatchewan uranium.”

Even before they took effect, the threat of the tariffs led to a surge in Canadian patriotism, with many consumers seeking out made-in-Canada products and trying to support Canadian-owned businesses whenever possible.

Last week, he Saskatchewan NDP kicked off a campaign encouraging residents to support Saskatchewan-made goods and businesses, launching a website listing some of the available options.

U.S. tariffs could have lasting impact: Sask. economist

Jason Childs, an associate professor of economics at the University of Regina, said the U.S. tariffs will mainly hit Canada on the production side.

“Our producers are going to be asked to eat some of this tariff cost,” Childs explained.

“They’re going to be asked to lower their prices. We’re going to see a reduction in demand as well. The third thing we’re going to see – and we’re seeing it already today – is a drop in the exchange rate. So as the Canadian dollar becomes less practical, our goods become cheaper to American buyers, and that offsets some of the tariffs.”

Childs noted that the close trade relationship between the two nations mean that some products cross the border multiple times in their journey from raw resources to a finished consumer product. He said that means that retaliatory tariffs could cause Canadians to see an extra increase on certain goods.

“Because of the relative scale of the two economies, we’re going to end up paying almost all of our counter-tariffs, and we’re going to end up paying some of the American tariffs. So we’re going to get hit twice,” he said.

On top of that, Childs said market volatility will add risk to Canadian investments.

“The ‘fasten seat belt’ sign is on. You’ve got to get back in your seat and buckle up. It’s gonna be rough. Nobody’s sure how long this is gonna go, and nobody’s sure what the ultimate impacts are gonna be,” he said.

Childs said the tariffs could have a long-term impact on the Canadian economy.

“If we go down this road for any length of time and companies go ahead and move to the U.S., they’re gone probably forever, and we’ll have to grow from a lower base,” he said.

“If we see automotive manufacturing suddenly pick up and move to the U.S., if we see financial firms (like) Brookfield move to the U.S., they’re gone and they’re not coming back, so we have to grow new ones from scratch, and that’s a slow, long process.”

Childs said consumers choosing to buy more Canadian products and getting rid of trade barriers between provinces would help offset some of the costs from tariffs, but noted that it won’t even out completely because of the massive population difference between Canada and the U.S.

Saskatchewan farm groups to hold special summit

Eight Saskatchewan farm groups have planned a summit in Saskatoon later this month, with the goal of bringing together industry experts, producers and stakeholders to discuss the trade concerns and other issues the province’s agricultural sector is facing.

“The summit underscores the critical role of agricultural organizations during these uncertain times,” Bill Pryblyski, president of the Agricultural Producers Association of Saskatchewan, said in a statement.

“Issues like the start of U.S. tariffs showcase our vulnerabilities, highlighting the need for greater awareness and preparedness.”

“By joining forces, we’re focused on safeguarding our industry, tackling trade hurdles, and charting a course for continued growth for Saskatchewan’s agricultural community,” added Toby Tschetter, chair of SaskPork.

The summit is set to begin on March 27.

–with files from The Canadian Press