New federal counter-tariffs that came into force this week in response to recent U.S. duties are reshaping trade decisions for Saskatchewan businesses, with outcomes varying widely across the province’s economy.
Tariffs match U.S. measures dollar for dollar
Ottawa has said its latest measures are set to match U.S. tariffs dollar-for-dollar, targeting about $27.6 billion worth of American goods. The move was launched after the U.S. announced 50 per cent tariffs on certain Canadian products.
The ripple effects are being felt in Saskatchewan. Some firms that have cross-border manufacturing or large procurement teams say they can adapt distribution and sourcing to blunt the blow. Others — especially import-reliant retailers — say they face higher input costs that are likely to be passed on to customers.
One manufacturer’s strategy: shift production and new markets
Degelman Industries, a farm and industrial manufacturer located outside Regina, is one local firm that says it has options because of its U.S. presence.
“Everybody gets nervous when there’s things that are happening that are out of their control. We’ve got great customers and relations in the U.S. and we will continue that. We’ve got great staff in the U.S., great staff in Canada and customers as well, so our procurement team works hard to get the best price for each side of the border.”
The company’s president and CEO told reporters that about 45 to 50 per cent of Degelman’s sales go to the United States. That cross-border footprint allows Degelman to reassign where parts are made; its facilities in Canada and North Dakota can be leveraged to produce components where it is most economical.
Degelman is also pursuing overseas markets to diversify exposure, naming Australia as an example of a promising market because of similar agricultural conditions.
Federal supports and varied impacts
Degelman said it is benefiting from federal government funding aimed at keeping Prairie manufacturers’ supply chains functioning amid tariff pressures. The injection of public money is intended to reduce disruption for firms that buy or sell across the border.
Even with supports, not all businesses have the same tools. Smaller retailers that import goods from the U.S. or rely on American-made inputs will find it harder to shift production. One consequence already noted is that consumers in the province may pay more for some American-made products, including certain alcoholic beverages.
- Who wins: Manufacturers with facilities or suppliers on both sides of the border or those with strong export networks can reassign production and sourcing.
- Who loses: Retailers and importers dependent on American goods and smaller firms with limited procurement flexibility face higher costs.
- What consumers may see: Higher retail prices on some U.S.-sourced items, such as alcoholic beverages and other imported goods.
Uncertainty and planning
Business leaders described the current environment as uncertain. Procurement teams are under pressure to find the most economical sourcing options, balancing domestic and foreign input costs and the new tariff landscape.
For many Saskatchewan firms, the challenge will be practical: determine which components or products can be shifted to Canadian plants, which can be sourced elsewhere, and which will inevitably carry higher landed costs. Companies that cannot move production quickly may need to absorb costs in the short term or pass them on to consumers.
| Item | Detail |
|---|---|
| Value targeted by Ottawa | $27.6 billion |
| U.S. tariff rate prompting retaliation | 50% |
| Degelman U.S. sales proportion | 45–50% |
Local economic observers say the next steps will be important. If tariffs persist or escalate, companies that have not yet diversified supply chains may face sustained pressure. Conversely, firms that can redirect sourcing, expand to new export markets or take advantage of federal supports may weather the disruption more effectively.
For consumers, the immediate practical advice is straightforward: expect some price shifts for imported U.S. goods, and where possible consider Canadian-made alternatives as businesses and shoppers adapt to a changing trade environment.
The developing trade dispute will remain a watchpoint for Saskatchewan’s prairie economy as companies rework procurement strategies and governments monitor the broader impacts on jobs and prices.
