BISMARCK, N.D. (KFYR) — Just days after President Donald Trump declared the United States and Canada were on the verge of a historic trade deal, negotiations broke down. Canada has withdrawn from trade talks, and both nations have enacted reciprocal 50% tariffs on one another, leaving North Dakota’s export economy caught directly in the crosshairs.
Because Canada is North Dakota’s number one international trading partner, these sudden trade barriers threaten to hit the Peace Garden State harder than almost anywhere else in the country.
“Canada is our number one trading partner,” Representative Julie Fedorchak said. ”80% of our exported products go to Canada. We sell $7 billion in goods to Canada approximately on an annual basis. And our next closest trading partner is Mexico at just under a billion dollars annually.”
The sudden increase was triggered last Saturday when President Trump placed a 50% tariff on $20 billion worth of Canadian goods, citing long-standing unfair trade practices.
“They don’t treat our bison very fairly,” Fedorchak explained. “They don’t treat our potatoes very fairly… So the president is trying to negotiate away some of those barriers.”
But Canada’s retaliatory tariffs and decision to halt trade negotiations have left both countries without open communication channels at the federal level. For North Dakota businesses already dealing with inflation, this prolonged trade standoff threatens to have a major impact.
North Dakota relies on Canadian imports for supplies like steel for manufacturers, along with fertilizer, energy and chemicals for farmers.
“I hear a lot from our farmers on the impact of the high input costs,” Fedorchak said. “We don’t want to see higher input costs across the board.”
Fedorchak met on Wednesday with the General Counsel for the Canadian Consulate to discuss ideas and how Congress can help find a resolution.
“This is an issue that’s tough for North Dakotans,” Fedorchak said. “I just hope that they do it as quickly as possible and this is resolved so our folks here in North Dakota have certainty.”
For now, the U.S. 50% tariffs on Canadian goods are already active, and Canada’s retaliatory tariffs are scheduled to take effect on Sept. 8.
A second round of U.S. tariffs targeting Canadian automotive parts, cars, trucks, and steel products is scheduled to take effect on Jan. 1.
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