REGINA, Sask. — Sweeping United States import bans take effect as President Donald Trump demands an apology. We hear from Canada United States Trade Minister Dominic LeBlanc and United States Trade Representative Jamieson Greer as the diplomatic freeze sets in. We also look at the clash over soaring harvest diesel costs, a push for domestic energy security, and how border states like North Dakota are navigating the fallout.
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. The cross-border trade dispute reached a fever pitch yesterday as Washington and Ottawa dug their heels in just hours before a severe set of American import bans took effect.
Starting at 12 a.m. today, the United States officially banned Canadian alcoholic beverages, dairy byproducts, and motorcycles. The escalation was matched by provocative comments from the Oval Office. Speaking to reporters, U.S. President Donald Trump stated he expects the Canadian government to contact him in the next three or four weeks, apologize, and agree to a fair deal. But Canada-United States Trade Minister Dominic LeBlanc says the federal government will not be bullied into capitulation.
Dominic Leblanc — No, that's no, we're not. We think the United States is imposing illegal and unjustified tariffs on sectors of our economy that are causing considerable hardship to workers and businesses across the country, and the premier may want to add something. So, no, in my conversation with Ambassador Greer later today, we're talking about trying to find alternatives to the current circumstance because we're clearly not happy, Canadians, with the decision of the U.S. government to apply these tariffs to sectors of our economy where we have integrated with the Americans over the last number of decades. But we're also not going to sign a deal that's bad for Canada. So a sovereign, independent country takes its responsibility, diversifies our economy, builds strength at home. So that's always been plan A.
We're going to continue to pursue plan A, which is controlling what we can control, building strength at home, diversifying those trading relationships, and working with the United States to try and find a deal that will be in the interest of Canadian workers, that will protect Canada's sovereignty. So you can do the two at the same time.
Steven Wilson — Despite the tough talk from Ottawa, the White House appears perfectly content with the gridlock. United States Trade Representative Jamieson Greer says there is simply no rush to bring Canada back to the negotiating table.
Jamieson Greer — The reality is President Trump is comfortable where we are on Canada. Our trade policy is a global policy. It applies to Canada, China, the U.K., Brazil, all kinds of countries. He has his tariffs on steel aluminum autos to reshore. And we're making more steel than we've ever made in recent years. A lot of other trade with Canada, we're still getting what we need from them in terms of oil, gas, potash, all of these things.
We're shipping ag back and forth across the border. So there's still a lot of strong trade between the two countries. We're comfortable with where we are.
The Canadians, again, periodically they come and they want to have a deal. When they do, we talk. As we saw before, we gave them a deal.
They left. They call us now and then, and we have good conversations about potential deals. But it's not, there's no urgency on our side, I would say.
Steven Wilson — The standoff is causing deep anxiety across multiple sectors. Now, following up on Prime Minister Mark Carney's earlier remarks about contingency planning, a former top Canadian soldier stated publicly that assessing the risk of American military action against Canada was a necessary step. Academics at the State University of New York are warning that levying tariffs against a close ally will make other nations wonder if future American administrations will even adhere to treaties.
In border states like North Dakota and Montana, the vulnerability is staggering. A new policy paper from Advancing American Freedom, a conservative public policy advocacy organization founded by former Vice President Mike Pence, reveals those states lead the American nation in exposure, with 77 per cent of their total goods trade tied directly to Canada. However, North Dakota is currently insulated from a total export collapse because Canada explicitly exempted mineral fuels from its retaliatory counter-tariffs to protect its own energy security.
Here at home, Manitoba Premier Wab Kanu announced a cabinet shuffle yesterday to align his government as business leaders continue to express deep disappointment over the inability to secure a trade deal.
In Calgary, the 35th Tri-National Agricultural Accord brought together officials from Canada, the United States, and Mexico to navigate market access.
The need for access is critical on the prairies, where Saskatchewan beekeepers are warning that 15 to 20 per cent of their sales could be entirely wiped out by the American tariffs.
As the trade war disrupts the agriculture industry, political leaders are clashing over the soaring cost of diesel fuel. Conservative leader Pierre Poilievre says prairie farmers are being crushed by prices that are wildly out of step with the rest of the world.
Pierre Poilievre — The war in Iran, the dispute, the war in Ukraine, these are all factors, but they do not explain why Canada is paying 32 cents a litre more than the United States for diesel, or why we're paying 40 cents a litre more than the rest of the world. All the other countries of the world have to contend with the wars and the other global factors, but none of them, or the majority of them, are not paying as much as Canada. Only Europe is paying as much and slightly more, and that is another reason why we don't want to impose European taxes here at home.
The Grain Growers Association says that fuel for one combine could cost $15,000 more this year than last for the harvest. You will pay that at the grocery store. For a farm running six combines, that could be $90,000 in extra fuel costs this year.
When farmers and truckers pay more, the price gets passed on to you. What's most outrageous about the fact Canadians are paying more is we should have the cheapest diesel in the world. We have the fourth biggest supply of oil.
Why aren't we using our oil to power our people? We should be energy independent, and you, the Canadian family, should enjoy the price savings from that.
Steven Wilson — Prime Minister Carney fired back at Parliament, blaming provincial fuel taxes for the discrepancy, while highlighting incoming federal legislation.
Mark Carney — The provinces put taxes on diesel. The provinces put taxes on gasoline. The biggest difference between Canada and the United States is the provincial taxes on those carburants.
But also, Mr. Speaker, I draw attention to the Build Canada Strong Act, which will allow this country to build new refineries and keep diesel prices lower.
Steven Wilson — That push for domestic energy security was a major theme in Calgary yesterday, as Alberta Premier Danielle Smith and Ontario Premier Doug Ford pitched the Northern Shield Energy Corridor. Ford proposed a crude oil pipeline stretching from Hardisty to Sarnia to reduce reliance on American markets. Ford also used the summit to directly urge Albertans to vote to remain in Canada in the upcoming Oct. 19 independence referendum, stating, united we stand, divided we fall.
The federal government is also looking to solidify domestic energy ownership out west. Jon Tupper reports from Fort McMurray on a new initiative offering First Nations a major stake in the Trans Mountain Pipeline.
Jon Tupper — As Canada continues to push to diversify trade, Ottawa is hoping to diversify ownership of one of the country's most important energy corridors. The federal government is offering 129 First Nations along the Trans Mountain Pipeline route access to a collective 15 per cent equity stake backed by low-cost government financing. Communities that formally commit to invest are also set to receive $2.5 million to help with participation costs and due diligence. Trans Mountain now carries nearly 900,000 barrels of oil per day to the west coast, giving Canadian producers greater access to Pacific markets. Ottawa is also looking at future capacity growth and a proposed new west coast pipeline with Indigenous ownership expected to play a key role. In Fort McMurray, for Harvard News, I'm Jon Tupper.
Steven Wilson — We will continue to follow the local and global fallout as the American import bans disrupt cross-border commerce. I'm Steven Wilson. Thank you for listening to Trade Dispute: Impact on the Prairies.
Listen daily @9 am to 620CKRM and GX94 for new installments of Trade Dispute: Impact on the Prairies.
