Saskatchewan holds an incredible leverage point against the USA in this ongoing trade war, and it’s time we use it. It is estimated that Saskatchewan supplies 86.9% of U.S. potash imports. Every single one of Canada’s 10 potash mines are located in Saskatchewan, according to Natural Resources Canada. 

If Canada were to disrupt the supply of potash to the USA, it would be very difficult to replace. But what really needs to happen is an export tax on potash to increase supply, and it needs to happen now. Higher potash prices would have an immediate effect across the Midwest. 

The United States just imposed 50% tariffs on $27.6 billion of Canadian goods. We have little reason to hold off on imposing a tariff on potash. We keep being reminded how dependent we as Canadians are on the USA – well, potash is a prime example of how dependent the USA is on Canada. 

We also need to establish national strategic reserves of Canadian resources to protect against U.S. trade disruptions, stabilize domestic markets, and strengthen Canadian sovereignty.

• Stockpile essential raw materials to ensure stable supply and prevent price spikes during shortages.
• Ensure reserves are managed on a cost-recovery basis.
• Ban the export of unprocessed resources. Ensure Canadian oil, minerals, timber, and seafood are refined, processed, and value-added before export, creating Canadian jobs and reducing U.S. leverage over our economy.
• Apply export taxes (15-25%) on key Canadian resources that the U.S. relies on—such as oil, gas, uranium, aluminum, potash and natural gas. This would make it more expensive for U.S. industries to source these materials, discouraging tariffs on Canadian goods while generating revenue to invest in domestic industries.
• Coordinate our economic responses with Mexico and other key partners to create joint countermeasures to U.S. tariffs.

Establishing the Strategic Reserve for Potash Fertilizer Exports to the United States:

The Government of Canada needs to purchase potash fertilizer otherwise destined for the US market.

*PBO costing: https://www.pbo-dpb.ca/en/epc-estimates--estimations-cpe/45/EL-45-1029061-P

Issuing retail bonds to individuals with a total par value of $3.734 billion, an estimated value of $4.20B, a simple coupon rate of 5% annually, and a maturity of 10 years. (Effective June 30, 2025. This was costed by the Government of Canada Parliamentary Budget Officer at the request of the Green Party of Canada)

The Parliamentary Budget Officer deemed this an economically feasible plan.

Now is the time to enact it. We need to act in the interest of Canada and leverage this key resource before the fall fertilizing season.

Saskatchewan holds the key to a strengthened response to U.S. actions. Iowa, Ohio and Nebraska are in contentious elections and are high potash consumers. Using potash as our leverage instead of oil (the most common suggestion) is a better environmental solution, as we are not tying our economic solutions to oil yet again.

Our response needs to strengthen our ability to withstand the next trade fight. This policy does just that.

Sincerely,
Naomi Hunter
Saskatchewan Green Party Leader