REGINA, Sask. — We explore a sobering new policy memo warning that President Donald Trump will likely double down on tariffs, check in on plunging Canadian canola prices, and hear from Regina-based manufacturer Crazy Ape Extreme Equipment on how local businesses are pivoting to Europe to survive the tariffs.
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. Acknowledging that the cross-border trade dispute is turning into a prolonged battle, the federal government in Canada is modifying its tariff relief measures.
The Ministry of Finance announcing yesterday it is streamlining the regulatory process to provide more immediate help to domestic producers struggling under the American import bans. Frustrated by the ongoing diplomatic freeze, the Canadian Chamber of Commerce is launching a massive back channel. The B-20 mission officially kicked off in Washington, D.C. yesterday. The Canadian delegation is meeting directly with American government officials and CEOs from major corporations like UPS and Halliburton, attempting to rebuild cross-border investment from the ground up. Western provinces are also sending their own envoys. Representatives from Saskatchewan, Alberta, and Manitoba are embedded in the Washington delegation, attempting to leverage provincial resources to protect prairie supply chains, independent of Ottawa's negotiations.
The ground-level push comes as trade experts warn the optimistic narratives being pushed by both Prime Minister Mark Carney and U.S. President Donald Trump are completely hollow. A new policy memo from the C.D. Howe Institute warns that Trump's recent political reversal in the midterms will likely cause him to double down and rely even more aggressively on his executive trade powers.
Carlo Dade is the director of international policy at the University of Calgary's School of Public Policy. He says recent claims from the White House regarding an imminent breakthrough are simply political posturing.
Carlo Dade — A week prior or two weeks prior to that, we heard similar announcements from the U.S. administration about a potential deal with Mexico. They were close. The deal was going to happen any day now.
So that's noise, not signal. It's spin coming out of PMO. It's spin coming out of the White House.
Noise, not signal.
Steven Wilson — The stalled negotiations are hammering prairie markets. Canadian canola futures hit a four-month low yesterday. Analysts say the price drop is heavily driven by speculative liquidation tied to negative trade headlines.
The price plunge compounds the pain for Saskatchewan farmers, as final crop reports confirm yields are 15 per cent below last year. South of the border, agricultural producers in North Dakota and Montana are realizing the American midterm results will not provide a quick legislative fix. Because Democrats do not hold a veto-proof Senate majority, analysts say the executive tariff powers will not be amended, guaranteeing the economic squeeze will persist through the winter.
In a direct pivot away from the American border, the Saskatchewan Chamber of Commerce officially launched an interprovincial trade mission to Manitoba yesterday, subsidizing travel for businesses to abandon American markets in favour of domestic supply chains.
For local manufacturers, the pivot is a matter of survival. Luke Shaheen is the managing partner of Crazy Ape Extreme Equipment, a Regina-based company that manufactures commercial trampolines.
Luke Shaheen — We were hit by the trade, by the tariffs. All of our products were hit by a 50 per cent tariff. That's just part of business.
We ultimately had to raise prices to the United States. But if you want the world's most powerful trampoline, we're the only place to get it. So it's not so much about the price.
So we're fortunate. We are in our off-season now. That makes it a lot easier.
And we're very confident there's most likely going to be even more solutions by the spring, including we're looking forward to new European markets.
Steven Wilson — Saskatchewan Government Relations Minister Eric Schmalz says despite the trade headwinds, the province continues to add jobs.
Eric Schmalz — Despite these challenges, Saskatchewan's economy remains strong and steady. The labour force survey data released by Statistics Canada today shows year-over-year increase of 5,900 jobs. Growth continues to be driven by the private sector, with employment up 25,000 jobs.
Steven Wilson — Shaheen says the key for small businesses is refusing to rely on the government for a rescue and adapting to the new reality instead.
Luke Shaheen — So what matters is what we do, how our team pivots. The world's most powerful trampoline from this shop didn't exist a year ago. This team is pivoting, this team is changing, and this team is growing to new markets.
So although the United States is our biggest trading partner, the majority of our products go to the United States. That won't change. We're still shipping.
There's an order over on the side here going to Arkansas later today. We're going to keep doing that. And we're going to add new markets to that mix.
Steven Wilson — We will continue to watch for updates from the trade delegation down in Washington as the week progresses. I'm Steven Wilson. Thank you for listening to Trade Dispute: Impact on the Prairies.
Listen weekdays at 9 a.m. on 620 CKRM and GX94 for new installments of Trade Dispute: Impact on the Prairies.
