The world’s largest potash producer says the bill for U.S. President Donald Trump’s trade war could come out of the pocket of U.S. farmers.
“A U.S. farmer may have to bear the brunt of increasing costs associated with tariffs for an import from Canada,” said Ken Seitz, president and chief executive officer of Nutrien.
The United States imports over 80 per cent of their potash from Canada, specifically Saskatchewan. As such, Nutrien is one company paying close attention to the ongoing trade situation.
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“We have been talking with governments, as you might expect, including our colleagues in Washington, trying to work this through,” said Seitz. “But ultimately, over time, we expect this would be a bit of a challenge for the US farmer.”
Seitz has only recently returned from the U.S. capital, and will be there again next week. They’ve been in talks with U.S. policy makers to try and increase the understanding of potash’s importance and what it means to American farmers.
The company has been “dedicating a significant amount of time” to this awareness.
Nutrien has six potash mines in Saskatchewan, and exports the mineral to over 50 countries internationally. In addition to potash, they also process nitrogen, with nine plants worldwide – four in Canada, four in the US, and one in Trinidad.
“We’re going to be watching tariffs very closely, and we’re going to be carrying on with our business, including operating our plants and serving farmers in the way that we always do.”
Seitz believes that Nutrien is well positioned to deal with the situation, due to their global reach. While the U.S. is a major customer base, there is more worry for the American farmers than for Nutrien and potash distribution.
