Tariffs threatened by Trump could undermine food and energy security, Sask. premier warns
Scott Moe argues against retaliatory tariffs: 'Wrong moves here could have consequences that last for years'
Saskatchewan Premier Scott Moe is warning a 25 per cent tariff U.S. president-elect Donald Trump is threatening would hurt Canada's food and energy sectors and be "disastrous" for economic stability and security on both sides of the border.
"We've dealt with this in the past, and we need to approach it the same way now — working with the incoming Trump administration to address their concerns while ensuring that these tariffs, if they do come, are short-lived," Moe told host David Cochrane in a Friday interview with CBC's Power and Politics.
Moe specifically dismissed the idea of retaliatory export tariffs, a countermeasure some have floated in response to U.S. tariff threat. He argued that such a move would harm Canadian producers and create broader economic disruptions.
"I'll be asking the prime minister for assurances that these export tariffs are just simply not under consideration, nor should they be," he said.
Last month, Trump said he will impose a 25 per cent tariff on all products entering the U.S. from Canada and Mexico after he takes office in January, unless those countries stem the flow of drugs and migrants across their borders.
Canada's premiers took part in a virtual meeting with Prime Minister Justin Trudeau earlier this week to discuss the Canadian response to the demands by the incoming U.S. administration.
WATCH | Moe speaks with Power & Politics:
Following that meeting, Ontario Premier Doug Ford said his province could cut off energy supplies to the U.S. if Trump makes good on the tariff threat.
Saskatchewan is a major exporter of agricultural products, energy and minerals, all of which could face significant disruption if retaliatory tariffs are imposed, Moe said.
"Let's reduce tariffs, not add them. Punishing Canadians working in these industries is not what we would be asking for," he said.
"This isn't just about economic growth. It's about maintaining relationships with our largest trading partner and ensuring global stability. The wrong moves here could have consequences that last for years."
Retaliation would hurt producers, consumers: economist
Joel Bruneau, an economist at the University of Saskatchewan, echoed Moe's concerns, saying tariffs on Canadian exports like potash, oil or agricultural products would disproportionately harm Saskatchewan's economy.
"Export tariffs would not just hurt producers but would lead to higher costs for consumers in both Canada and the United States," Bruneau said. "Retaliatory measures escalate tensions and can entrench long-term inefficiencies in the global trade system."
Bruneau noted that Saskatchewan's economy is highly dependent on exports, particularly to the U.S., its largest trading partner.
"Anything that disrupts that trade relationship, even temporarily, risks significant job losses and a drop in provincial revenues," he said.
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Moe also emphasized the broader consequences of tariffs, framing them as a threat not just to Canada, but to global food and energy security.
"Broad-based tariff wars benefit neither the Americans nor the Canadians. They benefit non-allied nations in other parts of the world," Moe said, referring to countries like China and Russia that could exploit weakened North American trade ties.
Bruneau also said any trade disruptions would ripple through international markets.
"If Saskatchewan's agricultural exports are restricted, global food prices could rise, affecting vulnerable populations worldwide," he said. "Similarly, restrictions on energy exports could drive up costs for key allies."
'Time for a federal election': Moe
Moe said Canadian provinces need to show a unified front.
"There is much unity with respect to the efforts we need to secure our borders. All premiers are in agreement," Moe said, referring to leaders like Alberta Premier Danielle Smith and Manitoba Premier Wab Kinew, both of whom have rolled out border security plans following Trump's threat.
Moe said addressing U.S. concerns about border security could strengthen Canada's negotiating position once Trump takes office.
"If it's a concern for the incoming president, it's a concern for us," he said. "We should take the opportunity to secure the borders on behalf of Canadians — not just to satisfy U.S. concerns, but to address issues like drugs and illegal migration."
Bruneau agreed that could provide Canada with leverage in trade discussions.
"A co-operative approach to border security signals goodwill and may help defuse trade tensions," he said.
But Moe wants the federal government to address the threat of U.S. tariffs, and suggested Canada's bargaining position would be stronger if an election was called to give the government — whichever party wins — a new mandate.
"Donald Trump has a strong mandate" following last month's U.S. election, he said. "We have no such mandate bargaining from a Canadian position, and I think we should.… So I think it is time for a federal election."
But the priority remains ensuring stable and open trade with the U.S., Moe said.
"This isn't about Canada versus the U.S.," he said. "It's about working together to ensure food, energy and manufacturing security for both nations, and for our allies around the world."
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With files from Power & Politics