Canadian trade ministers visit Minnesota business leaders amid Trump tariff threats
MINNEAPOLIS — Late Monday night, President Trump announced 25% tariffs on all steel and aluminum imports. Brazil, Canada, Mexico and South Korea will all be affected.
The tariffs will start March 12 with no exceptions or exemptions. Those tariffs might only be the start, too.
Tuesday in Minneapolis, Minnesota business leaders and government ministers from nearby Saskatchewan met at the Consulate General of Canada's office in Minneapolis to discuss issues related to the now-delayed 25% tariffs on all imports from Canada and Mexico.
Feb. 1 was supposed to be the day when the U.S. imposed 25% tariffs on all Canadian imports, except for energy, which would've been 10%. Delaying those tariffs by a month though hasn't alleviated any of the worries about what this could mean for Minnesota and its biggest trading partner.
Minnesota's businesses and consumers buy a lot from Canada, both finished and raw materials. Minnesota imports about $14 billion worth of goods from Canada, and is Saskatchewan's top U.S. customer, relying on its oil and agriculture.
Trade ministers and Minnesota business leaders had a shared message on Tuesday: We need you.
"Even though tariffs are initiated by the U.S. administration, unfortunately there's probably going to be a retaliatory tariff that's provided by the Canadian government," said Warren Kaeding, Saskatchewan's minister of trade and export development. "And so that's just going to affect more goods that are flowing back and forth across the border. And so that also needs to, that story needs to be told as well."
Kaeding says he's in Minnesota to deliver a simple but straightforward message.
"Our biggest concern is, ultimately, any increase in costs will likely be a detriment to the consumer, customer and taxpayer," he said.
Gary Wertish, president of the Minnesota Farmers Union, said his message back was Minnesota doesn't want to lose Saskatchewan as a business partner.
"It's close by. The logistics are so easy to move back and forth. It would be a very tough market to replace if we lose the relationship with Canada," Wertish said.
Of course, they're not the only ones talking. The threat of tariffs have led to high level-meetings in Washington D.C. and Ottawa about securing the border.
Last year, U.S. Customs and Border Protection detained 198,929 people across the entire northern border, with 259 in what's called the Grand Forks Sector.
This year, the numbers are down: less than 40,000 and 67, respectively.
When it comes to drugs, agents retrieved roughly 11,500 pounds on the northern border, a little less than 10% of all drugs seized. This year, 3,500 pounds have been recovered.
The top drugs are marijuana, cocaine and ketamine. Kaeding says Canada is answering America's call.
"There's a lot more activity along the border when it comes to surveillance. The other thing they've deployed is plate readers, a unique piece of technology," he said.
After minerals, fuel and oil, Minnesota's top imported goods from Canada are vehicles and machinery, according to the Minnesota Chamber of Commerce.
