WASHINGTON — A Republican senator from Iowa is pleading for an exemption for potash if U.S. President Donald Trump triggers a trade war by imposing steep tariffs on Canadian imports.
Chuck Grassley's agriculture state could be hammered if Trump ultimately moves forward on his plan to impose 25 per cent across-the-board tariffs on all Mexican and Canadian imports, with a lower 10 per cent tariff on Canadian energy.
The 91-year-old Republican blamed inflation under the Biden administration for a 20 per cent increase in farmers' input costs. A steep levy on Canadian potash — a key component of fertilizer — could be devastating for those farm operations.
"Given these already-high input costs, President Trump should work to protect family farmers by ensuring Canadian potash and other fertilizer products aren’t subject to the threatened 25 (per cent) tariffs," Grassley said in a statement emailed to The Canadian Press.
More than 80 per cent of the United States' potash comes from Canada, said the American Farm Bureau Federation. The world's next largest producers are Russia and Belarus.
The threat of a trade war — which economists have said would damage both economies and boost inflation — was resolved temporarily Monday for both countries after Trump spoke separately by phone with Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
Citing concessions offered by both countries on border security, Trump announced that the tariffs would be paused until March 4.
White House Press Secretary Karoline Leavitt claimed victory for Trump in his negotiations with Canada and Mexico. When asked Wednesday whether Trump intends to use tariffs to cut taxes in America, Leavitt said he "believes tariffs are a great revenue raiser for this country."
Many Republican lawmakers have remained quiet on whether Canada should be hit with steep levies. Grassley, who described himself as a "free and fair trader" said "Americans, the world and, particularly, farmers benefit from open market access."
"President Trump is taking a different approach than I would, but I’m going to wait and see how it plays out," said Grassley, the Senate judiciary committee chair.
Canadian officials have taken little solace from the latest delay. The president has made a wide range of complaints against Canada, citing trade deficits and Canada's modest defence spending. He has said repeatedly he wants to make the country the 51st state.
Experts have warned that ongoing trade uncertainty will make Canada a less desirable place to invest than the U.S.
Trudeau will host a Canada-U.S. economic summit in Toronto on Friday. The Prime Minister's Office said the pause on tariffs presents an important opportunity to build a long-term prosperity agenda for Canada.
"We want businesses, investors and workers to choose Canada," Trudeau said in a news release.
The event will assemble Canadian trade and business leaders and representatives of organized labour to discuss strategies to expand the economy, break down internal trade barriers and diversify exports.
It will also feature members of the Council on Canada-U.S. Relations, formed earlier this year to advise Trudeau on bilateral relations and Trump's tariff threat.
Trudeau held a virtual meeting with the premiers Wednesday to discuss the federal government's response to the tariff threat. Ontario Progressive Conservative Leader Doug Ford said they talked about how to knock down interprovincial trade barriers, expedite permits for resource development and secure the border.
"I've asked the federal government, who is the czar when it comes to drugs overall, especially fentanyl?" Ford said at a campaign stop in Pickering, Ont.
Trump has linked the tariff threat to what he has called the illegal flow of people and fentanyl across the borders.
Energy and Natural Resources Minister Jonathan Wilkinson, Industry Minister François-Philippe Champagne and Defence Minister Bill Blair were in the U.S. capital this week looking to arrange meetings with industry representatives, Republican lawmakers and key members of Trump's team.
A delegation of Canadian premiers will also make the case for Canada in Washington next week. Ford, who is chair of the Council of the Federation, said it's critical to communicate directly with American lawmakers and business groups.
Ford, who used Trump's tariffs threat as justification for calling an early provincial election, said he will have 15 meetings on his first day in Washington, during which he'll discuss the benefits of the United States and Canada working together.
"I have yet to hear one elected official, no matter Republican or Democrat, (that) thinks this is a good idea to attack your closest neighbour and your cherished ally," Ford said.
"There's just no reason to be wasting time on this, in my opinion. Let's build a stronger two countries."
This report by The Canadian Press was first published Feb. 5, 2025.
— With files from Kyle Duggan in Ottawa and Allison Jones in Pickering, Ont.
Kelly Geraldine Malone, The Canadian Press