How Donald Trump could impact Saskatchewan’s trade industry

As Donald Trump prepares to return to the White House, what implications could this have for Saskatchewan industries?

Recent statements made by Trump have raised concerns about exports to the south.

Saskatchewan exporters are apprehensive about the potential impact of tariffs on local trade.

Gunter Jochum, president of the Wheat Growers association, expressed worries over Trump’s proposal of a 10- to 20-per cent tariff on all imported goods.

“Any time a government implements trade-distorting measures, it is a cause for concern,” Jochum stated. “A 10-per cent tariff would be significant and could adversely affect our trade with the US, putting us at a disadvantage.”

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“However, it is challenging to predict how this will unfold. We have to consider whether these were merely campaign promises, as history has shown.”

A tariff is a government tax imposed on imported goods and services, primarily used to generate revenue, influence trade partners, and safeguard domestic industries.

Jochum mentioned that while this may not be the primary concern for Canadian farmers, it is still a factor to monitor closely.

This is not the first instance of Canadian companies facing tariffs imposed by Trump.

In 2020, a 10-per cent tariff was introduced on most Canadian aluminum.

Christopher Sands, director of the Canadian Institute at the Wilson Center, emphasized the importance of Canada responding to the situation responsibly if tensions escalate.

“It is crucial to take the threat seriously because Donald Trump has a track record of following through on his threats,” Sands warned. “A 10-per cent tariff is reminiscent of actions taken by Richard Nixon in 1971.”

Sands explained that while these proposed tariffs may not have an immediate impact, they will initiate discussions between the two nations.

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