Premier Moe calls on Trudeau to denounce export taxes as retaliation option against Trump

Saskatchewan Premier Scott Moe gestures while speaking during a press conference before the speech from the throne in Regina, Nov. 25, 2024. THE CANADIAN PRESS/Heywood Yu

Saskatchewan Premier Scott Moe is urging Prime Minister Justin Trudeau to publicly say that export taxes will not be used as a retaliatory measure should U.S. president-elect Donald Trump impose a 25 per cent tariff on all Canadian imports, arguing that there are "other ways for us to have an impact."

"I'm asking very publicly for the prime minister to publicly state, should we ever consider tariffing the production of Canadians, that would be a betrayal of those that work in the industry," Moe said in an interview with CTV Question Period airing Sunday. "That would be a betrayal of the Team Canada effort, and it'd be a betrayal of Canadians as well."

Trump has threatened to impose tariffs on Canada and Mexico on his first day in office unless both countries address the flow of illegal migrants and illegal drugs at the border.

As first reported by the Globe and Mail and Bloomberg, the federal government is examining the use of export taxes on major commodities like oil, uranium and potash, but the move would be a last resort.

According to the Saskatchewan government, the U.S. is the province's largest export market, bringing in $29.3 billion in 2022 – with crude oil, potash and canola oil being the three most common exports. Saskatchewan is also the world's largest producer of potash.

When asked by host Vassy Kapelos whether Canada's response needs to be commensurate to Trump's threat, Moe pointed to Canada's "precise focused tariffs" during Trump's first term in office.

"Nobody is going to win if we have a Canadian government that is holding back Canadian production of what are essential goods and providing that energy and food security," Moe said. "Under no circumstances should export tariffs be considered by the federal government."

Asked again whether publicly dismissing export taxes could give an upper hand to Trump, Moe said "no."

"What we need to do is change the minds of certain policymakers south of the border through engagement, and, yes eventually, if necessary, through very selective precision tariffs that are having impact on those particular policymakers," Moe said. "Nobody is going to win in a broad-based tariff war, regardless of what the president-elect might do for a period of time."

In 2018, Canada unveiled a 25 per cent counter tariff on a long list of American steel and aluminum products, along with a 10 per cent surtax on miscellaneous U.S. goods including coffee, prepared meals and maple syrup, after Trump slapped a 25 per cent tariff on Canadian steel products and 10 per cent on Canadian aluminum. The tariffs were eventually lifted in 2019 after Canada, the U.S. and Mexico reached a deal.

Moe would not say whether the federal government has privately conveyed to him that export taxes will be off the table, but did acknowledge that Ottawa is working on options. Earlier this week, Trudeau said Canada "will respond" if Trump makes good on his threat.

In a separate interview also airing on CTV Question Period on Sunday, former finance minister Bill Morneau said he "would be very careful" in imposing an export tax.

"I think we need to work with them collaboratively, think about the places that we can make changes in our own interests and not react quickly in ways that will inflame tensions," Morneau said.

Morneau, who was in government during Trump's first term in office, compared Canada's first experience to Trump's tariffs in 2018 – when reciprocal tariffs were imposed – to now.

"At that stage, the Trump administration was going into a re-election campaign. They were actually concerned with how they were going to go out to Americans to present themselves the next go round," Morneau said. "We're not at the same time period right now."

Morneau added that the incoming Trump administration wants "to make some important changes from their perspective, and it's their perspective that they're bringing forward. I think we need to work with them collaboratively."

Asked directly whether he thinks Canada can avoid tariffs, Moe said, "I wouldn't say they're unavoidable" but he is "hopeful they aren't going to be implemented."

"We need to take them very seriously, and there is an order in which we need to do some work as a Canadian government, as provincial or sub-national governments, in the lead up to that January 20th date," Moe said.

You can catch the full interview with Saskatchewan Premier Scott Moe on Question Period this Sunday at 11ET/8PT on CTV and CTV News Channel.