Saskatchewan farmers voice concerns as U.S. tariff talks heat up

U.S. tariffs still on the table despite meeting CTV political commentator Scott Reid says it’s important Canada and U.S. established early engagement, but what comes next is most crucial.

The looming threat of a 25 per cent tariff on goods imported to the U.S. is causing turmoil for Saskatchewan farmers, according to the Agricultural Producers’ Association of Saskatchewan (APAS).

“There'll be some worry out at the farm gate for sure with these potential tariffs,” said Ian Boxall, president of APAS.

Last week, U.S. president-elect Donald Trump said he plans to slap the tax on all goods imported from Canada and Mexico, unless the countries curb drug trafficking and illegal immigration across their borders.

Boxall said the threat alone has already affected market prices. He also noted the U.S. is the Canadian agriculture industry’s largest trading partner. He said the tariff undermines decades of a smooth trading partnership.

“President-elect Trump needs to look at how great a trade we've had with the U.S. in the past, and how reliant we are on each other for that,” he said.

Saskatchewan exported $6.7 billion in agri-food to the U.S. last year.

Cattle producers are also concerned with the tariffs, according to the Canadian Cattlemen's Association (CCA).

“We do know whenever you put in place tariffs, it has a number of different impacts. You're going to typically lead to an inflated price in the U.S. because you're taking rent out of the middle there, and you're also going to lower prices for sellers,” said Dennis Laycraft, executive vice president of the CCA.

The Saskatchewan Trade and Export Partnership (STEP) said the tariffs would be problematic for many industries.

“We're free traders in this province, and in this country. Any time there is a barrier for us doing business in our markets across the world, there's deep concern,” said Chris Dekker, CEO of STEP.

Prime Minister Justin Trudeau met with Trump at West Palm Beach, Florida on Friday.

Sources tell CTV News the two discussed border security and trade, with the federal government being told the tariff cannot be avoided now, but solutions in the longer term are on the table if the border is secured.

Meanwhile, Dekker is encouraging businesses owners and industry leaders to reach out to their American clients to help lobby for free trade.