Trump's threats to tariff Canadian fertilizer imports could hurt Sask. potash industry
CBC
U.S. President Donald Trump’s threats to tariff Canadian fertilizer imports could damage Saskatchewan’s potash industry if demand for the mineral critical in making fertilizer drops off, according to a University of Saskatchewan professor.
“It would likely cause layoffs at the mines and there would simply be a glut supply of potash in Saskatchewan, which would cause companies to scale back their production capabilities,” said Stuart Smyth, a professor in agricultural and resource economics at the U of S.
“The Saskatchewan potash companies will be very concerned about this.”
Trump threatened to tariff Canadian fertilizer imports to the United States during a White House meeting Monday when asked how he planned to increase domestic fertilizer production.
“A lot of it does come in from Canada. And so we’ll end up putting very severe tariffs on that if we have to, because that’s the way you want to bolster here,” Trump said.
He didn't provide additional details on how those tariffs would work.
“You put very severe tariffs on," he said. "You’ll be making your own fertilizer very soon.”
Saskatchewan produces about a third of the world’s potash supply, shipping much of it south to the United States, where it is used as a key component in fertilizer.
That fertilizer is then used on crops to increase production, help with moisture retention and disease prevention, according to the Saskatchewan Mining Association (SMA).
“Fertilizer is an essential input, disrupting this trade risks lower application rates and reduced crop yields, with implications for global food security,” the SMA said in an emailed statement.
The organization spoke on behalf of the province's main potash mines, including K+S Potash Canada, The Mosaic Company and Nutrien.
Saskatchewan's main competitors in potash production are Belarus and Russia “who combined produce about 37.5% of the world’s potash,” according to the SMA.
Premier Scott Moe said he met with United States Secretary of Commerce Howard Lutnick and Secretary of the Treasury Scott Bessent recently, and neither wanted to see tariffs placed on fertilizer imports, which would drive input costs up for American farmers.
“They would have to buy it somewhere else, namely Russia would be the option.”
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