Sask. export group watching and waiting after Trump tariff moves

A group that supports Saskatchewan exports doesn’t expect a major impact from a United States Supreme Court ruling invalidating President Donald Trump’s emergency tariffs.

The court ruled in a 6-3 decision that Congress, not the president, has power over taxes and tariffs. It applies to Trump’s use of the International Emergency Economic Powers Act, or IEEPA, which did not apply to goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA) on trade.

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“The affected exports to the U.S. are pretty minimal right now anyway,” said Chris Lane, president and CEO of the Saskatchewan Trade and Export Partnership (STEP) “and so day to day businesses, I don’t know that’s going to change that much immediately, but we’ll have to see what happens with whatever happens next in the U.S.”

Trump has since announced he will sign an executive order to impose a 10 per cent global tariff to take effect on Monday.

Lane says STEP is focused on helping companies diversify products and markets.

“So whether that’s exploring new opportunities in Asia or Europe or South America, all important markets that are growing and have growing interest in Saskatchewan products and that’s really what we can control,” he said.

“And I think that’s an important message, is that Saskatchewan products and the commodities that we produce and the services that go along with it are in high global demand, and so our job is to match that demand with the supply here in Saskatchewan.”

The Saskatchewan government said in a statement that such diversification is its goal.

“While today’s ruling by the United States Supreme Court is good news, we are still evaluating the impact on Saskatchewan’s industries, economy, and finances,” it said.

“This ruling does not remove all the U.S. tariffs and the U.S. administration may be evaluating other mechanisms to reimpose some or all of these tariffs.

“Saskatchewan will continue our efforts to diversify our export markets to countries all over the world and to convince U.S. lawmakers that free and fair trade between Canada and the U.S. benefits businesses and consumers in both countries.”

University of Regina economics professor Jason Childs agrees that while the United States will continue to be an important trading partner, efforts must continue to expand free trade to other parts of the world.

“One, we want to get back to trading with the U.S., because they are our best customer and they’re a big, big market,” he said. “At the same time, let’s continue to pursue trade arrangements with everybody, because trade is what makes us wealthy.”

Childs hopes things will settle down and Canada and the U.S. can get back to a more normal relationship.

But a larger looming question remains, according to Lane, surrounding the outcome of CUSMA negotiations. The trade pact is set to be reviewed this year.

“The overwhelming majority of what Saskatchewan exporters send to the United States is covered and is either no tariff or low tariff under that agreement,” Lane explained. “But we know that that’s up for renegotiation and renewal.

“And so despite whatever happens today, the big impact will be what happens with CUSMA.”

— with files from The Canadian Press and Associated Press

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