Tariffs, trade wars loom large as finance minister prepares to deliver Saskatchewan budget

As with tradition, Saskatchewan Finance Minister Jim Reiter slipped on a pair of new black shoes Tuesday that he will wear when delivering the provincial budget Wednesday afternoon.

“I’ll let you read into that what you will,” he told reporters.

This will be Reiter’s first budget, titled “Delivering for you,” and he’ll deliver it beginning around 2:15 p.m. CST.

The gross provincial debt sits at more than $35 billion, including debt from Crown corporations, Treasury Board, Crowns and entities that rely on government funding.

The government’s mid-year financial report said this year’s deficit is projected to be $743.5 million.

Gage Haubrich, Prairie director for the Canadian Taxpayer’s Federation, was outside the legislature Tuesday with a digital counter mounted on the side of a moving truck that shows the provincial debt.

Haubrich said with all of the uncertainty around tariffs and trade, now is the time to rein in spending.

“Taxpayers have been paying for the consequences of fiscal irresponsibility for a long time and all the problems coming up,” Haubrich said.

“What taxpayers need is a show from the government they’re going to get the debt going down and saving them money, not blowing a bunch more money that the government doesn’t have.”

Trade wars

Reiter says it’s tough to build a budget with the threat of tariffs and trade wars.  

“It adds so much uncertainty,” Reiter said Tuesday. “So what you’re going to see tomorrow in the budget speech — sort of first thing out of the gate — is a discussion on tariffs. You’re also going to see as part of the budget, and some analysis work that was done by the Ministry of Finance on that as well.”

U.S. President Donald Trump has imposed 25-per-cent tariffs on Canadian steel and aluminum. Elsewhere, China plans to hit Canada with retaliatory tariffs of 100 per cent on canola oil, meal and peas in response to Canada applying levies on Chinese-made electric vehicles, steel and aluminum.

Saskatchewan produces more than half of the canola grown nationally.

Opposition NDP Leader Carla Beck is calling for action to address Trump’s and China’s tariffs.

“Everyone is on high alert,” Beck said. “This is a threat not only to the Chinese tariffs on canola meal and canola oil but the on-again, off-again threats from the American President,” Beck said Tuesday at Canada’s Farm Show in Regina.

“We need to see movement to remove the tariff on EVs, we need to have that 100 per cent tariff removed,” Beck said. “Canola is such an important crop when it comes to this province. This is a must-do for this government and for the federal government.”

Beck is also hoping the budget will cut costs for families and improve funding for both education and health care.

Promises

Last week at the annual Saskatchewan Association of Rural Municipalities convention in Saskatoon, Premier Scott Moe said the provincial budget will focus on health care, education and crime.

Moe said more money will be targeted at reducing surgical wait times, giving everyone access to a primary health-care provider, improving student reading skills and hiring police officers.

The 2024-25 budget earmarked $7.6 billion for health care and $2.2 billion for school divisions.

The Sask Party also committed tax relief to reduce personal income taxes, an expansion to the graduation retention program, and additional rebates for families with children in sports and arts.

“This won’t surprise you when you see it tomorrow,” Reiter said Tuesday. “It’s priority areas that we heard from people during the election campaign where they expect government to focus.

“I’m very happy, very comfortable with where we landed.”

Statement shoes

Reiter made sure that his new shoes were not made in China or whose parent company was headquartered in the United States.

“These shoes are manufactured in India where a major trading partner and head office is in England. So again, the symbolism there is with all the tariff discussion these days, that’s where the shoes came from,” Reiter said.

WATCH | Sask. finance minister makes fashion statement — about tariffs — with budget day shoes:

Sask. finance minister makes fashion statement — about tariffs — with budget day shoes

As is tradition, Saskatchewan Finance Minister Jim Reiter purchased new shoes for provincial budget day. When shopping, he made sure to avoid U.S.- and Chinese-made footwear — a comment on the ongoing trade war.

He says the world has to come back to trading freely among countries.

“The world needs to get back to free trade or as close to free trade as we can get, where export-based economy — that’s to our advantage and it’s, frankly, the whole world’s advantage,” Reiter said. “When free-trade agreement came in for North America, you saw how all countries prospered. We need to remind people of that.”