SASKATOON — Premier Scott Moe said 25 per cent tariffs imposed by the US on Canadian goods and products will hurt both countries and have a broader economic effect, increasing inflation. President Trump’s 25 per cent tariffs on imports from Canada and Mexico, and 10 per cent on China will take effect on Tuesday, Feb. 4, as part of his campaign promise to protect US consumers and their economy.
Moe, in a media briefing on Monday, Feb. 3, at the Saskatchewan Cabinet Office, said Canadians are facing a challenging position on the imposition of across-the-board tariffs of 25 per cent on Canadian products and 10 per cent on energy heading into the US, and could start a trade war and hinder the relationship between the North American neighbours and long-time economic trade partners.
“I think what we will find with the imposition of these tariffs on Canadian and Mexican goods is that they will be harmful to everyone, regardless of where you live in North America. Yes, they'll be harmful to Canadians. They will also harm Americans, increasing the inflationary environment, increasing the costs at the fuel pumps, increasing the costs at the grocery stores, and decreasing jobs. The job loss will be felt on both sides of the border,” said Moe.
“It will be decreasing the investment environment that we, in Saskatchewan, have worked very hard to ensure is a viable investment environment. I would say the investment environment in North America is going to be much less appetizing than it has been and much less advantageous, again, for each of us who live in North America.”
He added that he has been clear on his position to de-escalate the looming trade war with the US imposition of 25 percent tariffs on Canada, and he would do everything to engage and continue the discussion in finding a solution beneficial to both countries and work collaboratively with our largest trading partner.
“Our North American economy is very integrated and is much stronger when we are operating in a non-tariff environment, and it's incumbent on each of us as political leaders to do what we can to de-escalate any conversation or any talk around the imposition of these very, very harmful tariffs. I've said many times that we should take what President Trump says very seriously, but not necessarily literally,” said Moe.
“I would note, just as of this morning, and just very recent and high-level information, that maybe Mexico has received a 30-day reprieve on the imposition of tariffs from the Trump administration. This is an advancing situation, as I understand it, with respect to the conversation between President Trump and Mexico.”
He is hoping Minister of Intergovernmental Affairs of Canada Dominic LeBlanc would reconsider his proposal of advancing conversation and de-escalate the situation on the imposition of 25 per cent tariffs on Canada, which would hurt Canadian businesses and families.
“We're certainly doing that at the political level. Engaging with political leaders and decision-makers throughout the US on what a strong, integrated, growing North American economy can do, and the food and energy security the province of Saskatchewan brings to that conversation. Businesses and industries have an equal opportunity to engage up and down their supply chains with [their] US [counterparts]. I would encourage them to do so, and each of us as individuals do as well,” said Moe, who will be flying to Washington D.C. and Mexico next week.
“Mexico is an export market of interest for Saskatchewan and is becoming increasingly a much stronger trading partner. With the introduction of [the US-Mexico-Canada Agreement] a number of years ago, we have exported over a billion dollars to Mexico in the last year or two, and we'll be spending a short period in Mexico engaging with decision-makers there as well,” Moe added.
