Moe says Sask. will continue seeking diplomatic resolution to tariffs

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Saskatchewan’s premier is calling on the federal government to step up to avert Chinese tariffs on Canadian value-added canola, and pushing for a renewed emphasis to build up major export infrastructure.

Top of mind for Scott Moe was China’s 100 per cent tariffs on canola oil and meal, which are set to go into force March 25. During a media conference Thursday in Saskatoon, Moe called for urgent engagement with the Chinese government to resolve the dispute. 

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“There needs to be action by our federal government before any election call to engage with China to ensure that the canola industry is not left in purgatory,” he said.

Moe said his government has been meeting with industry leaders from a range of sectors to discuss the impact both American and Chinese tariffs could have on the province’s economy. Moe said he wanted to meet with business leaders to ensure the provincial government is best representing Saskatchewan’s economic interests.

In 2024 Canada exported $920 million worth of canola meal to China, with 41 per cent of that coming from Saskatchewan. That same year, $20 million worth of canola oil was exported with half of that coming from Saskatchewan. The province is home to five canola crushing plants. 

The premier offered his congratulations to Mark Carney for winning the leadership of the Liberal Party of Canada, but added it was not good to see that the incoming prime minister’s first trip abroad was going to be to Europe instead of China or the U.S.

“We need to have urgent, urgent engagement by the federal government with the country of China, showing a willingness to find a path through and a path away from the tariffs,” he said.

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If the tariffs on canola products go into force, Moe said the industry will see negative impacts which will include people in the province finding themselves out of work.

“It’ll close crushing plants. I can’t be more clear,” he said.

The premier said there is also concern a disruption in market access could lead to Saskatchewan exporters losing market share to competitors. He added this could make it difficult for the canola industry to recover.

“(Markets) were incredibly hard to build in the first place, and they’re going to be incredibly hard to regain, and so I don’t know that those jobs will immediately come back,” he said.

Warren Kaeding, Saskatchewan’s minister of trade and export development, said the uncertainty created by the Chinese tariffs on value-added canola has him worried about the impact on people across the industry, including farmers. He said before the tariffs came into effect new players were preparing to enter the market, and he is unsure what the future will be for those just starting up.

“We’ve got a new crush plant that was hoping to come online here very shortly, and I am concerned about them and the viability of them coming to the market place,” he said.

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Moe said he also had been in contact with representatives from the provincial steel industry, which is currently dealing with a 25 per cent tariff imposed by the U.S. on Canadian steel and aluminum. Those duties came into force on Wednesday.

“We’re in active discussions with the steel industry and how we can keep people employed in that industry,” he said.

The premier said he was not aware of any job loses in the provincial steel industry as a result of those tariffs.

The U.S. is a major market for Saskatchewan steel producers, with around $400 million worth of product shipped south annually. The province is home to 364 business that produce fabricated metal products.

Representatives from the steel industry have called on Moe to take direct action. Mike Day — president of United Steelworkers (USW) Local 5890, which represents workers at Evraz Steel in Regina, which ships around 30 per cent of its annual product to the U.S. — said the provincial government needs to take steps to support workers.

“Right now, I see nothing coming from this premier and his government. No plan to get us out of this mess,” he said in a media release. 

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Moe believes there is room for Saskatchewan’s steel industry to grow, specifically to help build and expand important national infrastructure, like pipelines and seaports.

Going forward, the premier said he is hoping to see the current and future federal governments place more of an emphasis on major infrastructure projects.

“I would hope there’s a renewed vigour on behalf of all Canadians to look at ports, pipes and rail,” he said.

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