Sask. gov to stick with U.S. booze and materials pause after Trump postpones tariffs

The Saskatchewan government is sticking with its tariff response measures after U.S. President Donald Trump announced he will pause tariffs on most Canadian goods.

On Thursday, President Trump said he would postpone the 25 per cent tariffs on Canadian exports that fall under the Canada-U.S.-Mexico Agreement (CUSMA) until April 2. According to the Associated Press, roughly 62 per cent of Canadian imports to the U.S. would likely still face the tariff.

In a statement, the Saskatchewan government said it's still seeking clarification on which export products will still have the tariff applied.

"While any easing of U.S. tariffs is welcome news, the ongoing uncertainty around the tariff situation is hurting businesses and consumers on both sides of the border," it said. "For now, the measures announced yesterday by Premier Moe regarding U.S. alcohol and procurement remain in effect."

Saskatchewan Premier Scott Moe announced Wednesday that in response to American tariffs, the Saskatchewan Liquor and Gaming Authority (SLGA) would stop buying U.S.-made alcohol and stop selling it to retailers and restaurants.

He also said future capital projects planned by the government would be temporarily paused so that American contractors and materials could be minimized.

In response to the tariff postponement, Saskatchewan's Opposition NDP said the Saskatchewan Party government should begin an emergency legislative session.

"We don't want any tariff — period," the NDP said in a statement. "Saskatchewan people are scared right now and they deserve to know that their government is working around the clock to counter whatever the U.S. administration throws our way."

U.S. import tariffs on Mexico were also paused on Thursday. It is the second postponement this year of the major tariffs Trump has threatened to impose on Canada and Mexico. On Feb. 3, Trump announced a one-month pause of the tariffs, which were briefly imposed this week beginning Mar. 4.

Simon Enoch, a senior researcher with the Canadian Centre for Policy Alternatives, said Trump may be following a long-term strategy with the constant policy changes.  

"I really think Trump is trying to have his cake and eat it too," he said of the repeated delays. "I think what he gets to do is ensure that there's no inflation from those tariffs, but at the same time, get to try and accomplish his goals of reassuring investment and production to the United States."

Enoch emphasized that even the threat of tariffs is having a negative economic impact, primarily by making commodities more expensive.

"What we really have to do is call President Trump's bluff, call his bluff and say, 'You know what, we're not going to take this sort of every month, having to go through all this uncertainty, until you take tariffs off the table,'" he said.  

"A 25 per cent export tax on potash, 25 per cent export tax on energy imports, right? Make them feel the pain. That's the only way you can negotiate with something like that."

Prabha Ramaswamy, the CEO of the Saskatchewan Chamber of Commerce, echoed Enoch's worries about investment turbulence.

The whole tariff situation has created a lot of uncertainty, unpredictability in our province," she said. "We as a country, and our businesses here in our province, we need to keep preparing for tariffs. Just so that we have a Plan B."

Her advice for Canadian businesses is to understand what tariffs would mean for their models and stay up to date on the tariff pauses.

"Start to think about diversifying suppliers and make Canadian suppliers a priority. Research tariff exclusions for products that you cannot source from Canada," she said.