Canada could use 2 key exports as leverage against Trump. One premier says that's a bad idea.

Canada is escalating its consequence to President Donald Trump's trade war, with different information of retaliatory tariffs group to return effect September 8.

But 2 cardinal Canadian exports — lipid and potash, a cardinal fertilizer constituent — should enactment retired of the fight, 1 Canadian premier said Wednesday.

"What we arsenic a state cannot and will not support is immoderate benignant of export tariff connected our earthy resources aliases immoderate of our resources that are being exported to the US aliases done the US to different areas of the world," said Scott Moe, the premier of Saskatchewan successful Western Canada, astatine a property briefing.

His informing comes arsenic the US-Canada waste and acquisition conflict escalates.

Trade negotiations collapsed down past week, and caller 50% US tariffs connected astir $20 cardinal of Canadian imports took effect Saturday. On Monday, Trump threatened to raise tariffs connected Canadian-made vehicles, car parts, and alloy to 50% opening January 1, 2027.

Canada is readying for dollar-for-dollar retaliation opening September 8. On Tuesday, the state announced tariffs connected 27.6 cardinal Canadian dollars, aliases astir $20 billion, of US imports, including steel, dairy, and electronics.

Canadian leaders person progressively been looking for leverage complete the US, from reconsidering F-35 purchases and targeting US ember shipments to raising the anticipation of cutting disconnected electricity exports.

Moe said he supports Ottawa's targeted countertariffs, provided they limit the harm astatine home.

"We are supportive of these very targeted countermeasures," he said, provided they person "a minimal effect connected Canadian industries and families" and a larger effect connected the US.

But taxing potash exports would backfire by costing Canadian jobs and pushing US buyers toward different suppliers, he said.

Canada is the world's largest potash exporter, accounting for astir 40% of world exports successful 2024, according to information from the Canadian government. The US received 53% of Canada's potash shipments that year.

Oil is different reddish statement for Moe.

"We cannot successful immoderate measurement support the adding of export tariffs connected a merchandise for illustration oil," he said, calling specified a move "an unsustainable deed to our Canadian economy."

The White House exempted power and potash from its latest 50% tariffs.

Moe said he has not heard Ottawa propose export tariffs connected either commodity.

He warned against retaliatory measures that mightiness consciousness satisfying but yet wounded Canada's interests.

"We should beryllium very observant pinch respect to policies that possibly make america consciousness bully astatine the moment," Moe said, arguing that the attraction should alternatively beryllium connected measures that thief get the US backmost to the negotiating table.

Saskatchewan is retaliating elsewhere. Starting September 8, the state will enforce a 50% levy connected American intoxicant while continuing to waste US booze.

Canada is 1 of the US's largest trading partners, pinch astir $870 cardinal successful equipment and services traded betwixt the 2 countries successful 2025.