Saskatchewan’s latest U.S. tariff measures may have a limited overall impact on provincial exports, but dealers, farmers and municipalities are bracing for higher costs. Local businesses say uncertainty across supply chains could push inflation further into equipment, parts and public projects.
Podcasts are available now on GX94, Yorkton, or 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. The political and economic pressure continues to build in Saskatchewan as businesses and lawmakers analyze what the latest cross-border trade barriers mean for the province.
Saskatchewan Premier Scott Moe issued a statement yesterday saying the newest round of United States tariffs will have relatively little net impact on Saskatchewan.
The premier says while exports like wooden furniture and honey have had tariffs increased, other products like salt and electrical panels have actually seen the tariffs removed.
He notes about 94 per cent of Saskatchewan exports to the United States remain tariff-free. However, Moe acknowledged that some businesses and workers have been disproportionately affected by market disruptions, higher costs, and lost opportunities through no fault of their own. He says the government will continue working alongside those businesses and advocate for Saskatchewan's interests.
The premier stressed the ultimate goal must be 100 per cent tariff-free exports as the trade barriers hurt businesses, workers, and families on both sides of the border.
While the provincial government assesses the macroeconomic picture, agricultural and heavy equipment dealers are already preparing for widespread inflation at the local level.
Members of the White City and Emerald Park Business Association met yesterday to discuss the reality of bringing products across the border.
Craig Slobodian is the Chief Operating Officer at Redhead Equipment in Emerald Park. He says the tariffs are a game changer that will drive up prices on everything.
Craig Slobodian — There's definitely a lot of uncertainty. I'd say dealers and customers are unsure how it's actually going to be applied. Within whatever industry, ag, construction, truck, it's affecting some parts of it. It's not affecting other parts of it. There's winners and losers, but it's definitely going to drive inflation for those pieces that it hits.
Right now, say in the trucking side, it's a 25 per cent tariff on commercial trailers and semi-trailers for road tractors, but it's not affecting the trucks at this point.
It's affecting lawnmowers.
It seems like it's really going to affect parts.
Steven Wilson — Slobodian notes that with roughly 80 per cent of their inventory originating in the United States, dealers simply cannot absorb the extra costs, meaning price increases for customers are inevitable.
It's a similar story at Mazergroup in Emerald Park. General Manager and White City-Emerald Park Business Association president Kevin Rossler says the ongoing trade war is creating a frustrating waiting game for both dealerships and farm customers.
While some heavy equipment like New Holland combine harvesters are assembled in Belgium and avoid direct American tariffs, Rossler warns that broader supply chains are still feeling the pinch and the ripple effects are unavoidable across the entire industry.
Kevin Rossler — I think the best case scenario for everyone is that they both sides just meet and get this figured out and kind of get life back to somewhat of a normalcy, but I'm afraid what happens every time this occurs, you know, it takes a little bit of time to air quotes resolve itself and then prices don't always come right back to where they were before because manufacturers and suppliers make adjustments and it doesn't always revert back to pre-negotiation or tariff times.
So, I mean, it's just it goes back to the uncertainty and just costs of everything. Revenues are down for a lot of our customers and the weather has impacted immensely now this last week. So, I mean, any type of increase of costs just is detrimental.
Steven Wilson — The pain of rising capital costs is not confined to the private sector. Municipal governments across the prairies are also sounding the alarm over strained operating budgets.
Jon Tupper filed this report from Fort McMurray looking at how the trade dispute is forcing local leaders in Alberta to consider difficult financial choices.
Jon Tupper — Communities are raising concerns about the trade dispute with the United States, at least in Alberta.
Alberta Municipalities says other orders of government have yet to fully recognize what tariffs could mean for the costs of maintaining local services.
Cities and towns routinely make major purchases from buying steel for bridges to replacing graders and tariffs could suddenly make those projects and equipment significantly more expensive.
The association says municipalities could be left with two difficult options: reduce services relied on by residents and businesses or increase property taxes to cover the additional costs.
It says the municipal impacts need to be near the top of the agenda for governments as they determine how to support Canadians through this difficult trade dispute.
In Fort McMurray for CKRM News, I'm Jon Tupper.
Steven Wilson —As municipal leaders and business operators urge senior governments to prioritize practical relief and get back to the bargaining table.
The cross-border standoff shows no immediate signs of easing.
We will continue to bring you the latest developments and local reaction from across western Canada.
I'm Steven Wilson and thank you for listening to Trade Dispute: Impact on the Prairies.
