Sask. businesses near border brace for impact of tariffs

In towns like Estevan, Sask., where oil and gas, farming and manufacturing dominate, the impact of any tariffs imposed by the U.S. government could be immediate and widespread.

U.S. President Donald Trump recently announced 25 per cent tariffs on steel and aluminum set to take effect on March 12.

Those tariffs would stack on top of 25 per cent tariffs that Trump has been threatening to impose on most Canadian goods. Those tariffs were set to come into force last week, but Ottawa reached an agreement with the Trump administration to delay their implementation until at least March 4.

“Our prime industries are oil and gas … and then our farming … and manufacturing. Those members are going to be feeling the impact right away,” said Marissa Scarlett, executive director of the Estevan Chamber of Commerce.

Scarlett said the ripple effect will touch service industries linked to oil and gas, including transportation companies and those servicing equipment. 

Todd Shirley, a partial owner of Baxter Transport, agreed that any tariffs will have devastating impacts on Saskatchewan’s oil field service industry. He expressed concerns over increased operational costs and reduced competitiveness.

“It’s very disheartening, many people [could] lose their jobs,” he said.

He said his company would take a huge hit, as 20 per cent of his business is with the United States.

“I’m just going to wait and see what happens and then we’ll just have to deal with what goes on after that,” Shirley said.

Scarlett said that despite concerns, she has faith in local businesses to persevere.

“There is something to be said about this area, very resilient,” she said. “We’ve went through the oil going up and down … I feel our business owners are ready for the challenge.”

Scarlett said some companies are already tightening expenses to prepare for potential financial strain, but she also sees an opportunity to expand beyond U.S. markets. 

“It’s a huge opportunity in our country to reduce red tape and even counter some of the effects of tariffs. So I’m a big fan of looking within our own country.”