REGINA, Sask. — United States President Donald Trump formally walks back his threat to purchase Belarusian potash after acknowledging logistical realities. We also look at the rare bipartisan unity the threat sparked in Saskatchewan, explore the push for emergency harvest fuel relief as Alberta suspends its provincial gas tax, and review the latest rulings on Chinese steel dumping.
Podcasts are available now on GX94, Yorkton, or on 620 CKRM, Regina, hosted by Steven Wilson. Or read the transcript below:
Steven Wilson — Welcome to Trade Dispute: Impact on the Prairies. I'm Steven Wilson. United States President Donald Trump has officially walked back his threat, at least partially, to purchase pond ash exclusively from Belarus to punish Canada.
Speaking at the United Nations General Assembly in New York, the President acknowledged the logistical reality of the agricultural supply chain. He noted that American farmers need good prices and said the United States will continue to go with Canada. That admission was backed up by Belarus President Alexander Lukashenko, who released a statement saying his country simply does not have the volume to replace Canadian supply because everything is already contracted.
Prime Minister Mark Carney was also in New York, where he used the international stage to push a message of fertilizer independence, directly countering Washington's agricultural posturing. Before the White House retreated, prairie leaders were already dismissing the threat as an empty symptom of the trade dispute. Premier Scott Moe called the idea not feasible, pointing out the absurdity of the United States shifting purchases to a Russian ally.
The mining sector agreed, with industry representatives noting it is logistically impossible to displace North American supply via American rail and ports. Saskatchewan Agriculture Minister David Marit said earlier in the day that American agricultural leaders know exactly where their best supply comes from.
David Marit — I've talked to my counterparts in the United States, to the state commissioners, a lot of the ag commissioners. They want to see the continuation of the Saskatchewan potash going to them. It's reliable supply and it's a good supply.
It's exactly what their farmers are asking for. So we'll just continue to work with that and work with our state colleagues and try and send the message to the proper people to make sure that we get the agreement.
Steven Wilson — The initial threat from Washington drew rare bipartisan alignment in Saskatchewan. Provincial New Democratic Party leader Carla Beck praised Premier Moe for taking a firm stance against what he called blood potash. John Cairns has the details on the political response.
John Cairns — Carla Beck is welcoming Premier Moe's post on social media opposing the United States doing a deal for potash from Belarus. On Monday, Moe posted that the buying of, quote, blood potash from Belarus is supporting Russian aggression, unquote. Beck says the pushback from the premier on this issue is something the NDP has long called for.
Carla Beck — I will say that the premier's comments on this have been as firm and strong as I've seen and that's what we've been calling for all along. It's time to take a strong stance and continue while we make our views clear with the United States to do the work of diversifying trade markets, building infrastructure and ensuring that we are not caught in the situation that we were caught in when all of this started.
John Cairns — Beck adds Saskatchewan needs to be firm in the trade dispute. She continues to support taking U.S. alcohol off the shelves and tightening up procurement policies.
Steven Wilson — Speaking on a farm near Earl Grey yesterday morning, NDP Shadow Minister for Finance Trent Witherspoon blasted the president's reckless behavior, saying that geopolitical gamesmanship is causing massive stress for local producers.
Trent Wotherspoon — So this is a reckless president that's driving up costs for producers on both sides of the border. I mean, it's completely unacceptable and deplorable that the president, of course, would be also suggesting that he should be buying potash from a partner of Russia at a time where Russia is acting in these abhorrent ways and basically fueling Putin's war machine. It's absolutely deplorable and unacceptable and, of course, drives up costs for producers.
Steven Wilson — Beyond the potash drama, Witherspoon says the ongoing trade war and American actions in the Middle East are contributing to the most expensive harvest on record. He is calling on the provincial government to match Alberta, which just suspended its provincial fuel tax yesterday to provide immediate economic relief. Wotherspoon laid out a five-point plan for local farmers.
Trent Wotherspoon — Farmers can't control the weather. And they're also being asked to absorb sky-high diesel in production costs. Diesel is now $2.63 a litre. That's why Carla Beck and our team are putting forward a five-point action plan to provide immediate relief, cost and cash flow relief for producers. First, we're calling for a temporary $0.12 per litre rebate on diesel, along with eliminating the existing $0.03 per litre tax that's applied to marked farm fuels to diesel.
Steven Wilson — However, Minister Marit says the province is not looking at introducing new fuel rebates. He argues the existing suite of crop insurance and ag stability programs are more than enough to support farmers through the difficult harvest.
David Marit — I think our suite of programs are actually pretty good. We've got the 75 per cent on the ag stability that farmers are looking for that might help them out. The cash advance is there.
It's up to half a million dollars. And by the way, it's on all commodities. It's not just on canola.
You don't have to be growing just canola, as I heard the member said. No, you can get it on whatever you grow. So there's that side of it as well.
And then I think the crop insurance programs we have, we have also for grade degradation too as well. So if the quality is not there, you're compensated as that well too.
So I think our suite of programs is actually very good for the farming community.
Steven Wilson
The trade war's ripple effects also continue to widen across other sectors. The Canadian International Trade Tribunal ruling yesterday that dumped and subsidized forged grinding media from China is threatening domestic industry, ordering new countervailing duties.
In Manitoba, the United Steelworkers say the reciprocal tariff bite is actively harming North American workers, as a strike at Gerdau, Ameristeel and Selkirk continues.
In the United States, railroads have announced modest corn tariff and shipping rate increases, expecting rail demand in North Dakota to ease due to production declines, which compounds cross-border transportation challenges.
In a sign that regional resource companies are seeking stability outside North America, Montana-based Silver Bough Mining Corporation has signed an $88 million funding package with a United Kingdom firm.
Finally, the World Trade Organization released data yesterday showing that global tariffs have decreased by a third since 1996. The organization notes the current 15 to 50 per cent bilateral tariffs between Canada and the United States represent a severe reversion to perfectionist policies last seen in the 1930s.
I'm Steven Wilson. Thank you for listening to Trade Dispute: Impact on the Prairies.
