Key facts
- British Columbia Premier David Eby suggested retaliatory measures against the U.S. in the trade dispute.
- Eby proposed halting the purchase of F-35 fighter jets and taxing U.S. thermal coal exports.
- Saskatchewan Premier Scott Moe opposed export tariffs on Canadian oil and potash.
- Canada plans retaliatory tariffs on $20 billion of U.S. imports starting September 8.
- Saskatchewan will levy a 50% tax on American alcohol imports.
Canada is escalating its response to President Donald Trump's trade war, with another round of retaliatory tariffs set to take effect September 8. However, Saskatchewan Premier Scott Moe has warned against targeting key Canadian exports like oil and potash, stating such measures would harm the Canadian economy.
British Columbia Premier David Eby has suggested alternative retaliatory measures, including halting the planned purchase of F-35 fighter jets from Lockheed Martin and imposing additional export tariffs on American thermal coal shipped through British Columbia. These proposals come as trade negotiations have broken down and the U.S. has imposed new tariffs on Canadian imports.
Canada plans dollar-for-dollar retaliation, announcing tariffs on approximately $20 billion of U.S. imports, including steel, dairy, and electronics. Trump has also threatened higher tariffs on Canadian-made vehicles, auto parts, and steel. Moe supports targeted countermeasures that minimize damage to Canadian industries while maximizing impact on the U.S.
Canada is the world's largest potash exporter, with the U.S. being a major recipient. Moe argued that taxing potash exports would lead to job losses in Canada and push U.S. buyers to seek other suppliers. He also described oil export tariffs as an unsustainable blow to the Canadian economy. The White House has exempted energy and potash from its latest tariffs.
In addition to federal measures, Saskatchewan will impose a 50% levy on American alcohol imports starting September 8. Moe emphasized the need for careful consideration of retaliatory policies to ensure they serve Canada's long-term interests and encourage the U.S. to return to negotiations.