Citing Trump tariffs, Canadian province eliminates a carbon tax

By Anne C. Mulkern | 04/02/2025 06:10 AM EDT

Saskatchewan, the second province to revoke a carbon tax, wants to “ensure that our industries … are more competitive,” its premier says.

Canada Prime Minister Mark Carney has revoked a federal carbon tax.

Canada Prime Minister Mark Carney has revoked a federal carbon tax, prompting provinces such as Saskatchewan to British Columbia to eliminate part of their carbon taxes. Thomas Padilla/AP

Another Canadian province is revoking a carbon tax, this time partly in response to President Donald Trump’s tariff on some Canadian imports to the United States.

Premier Scott Moe of Saskatchewan, a province of 1.2 million people, suspended the provincial carbon tax on facilities with highest carbon emissions. The rule limited carbon intensity, or emissions per output.

“We are facing as Canadians potential tariffs and some implemented tariffs in the steel and aluminum industry already” from the U.S., Moe told reporters. “We are taking very decisive steps to ensure that our industries in Saskatchewan are more competitive.”

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Saskatchewan acted days after British Columbia, Canada’s third-most-populous province, with 5.9 million people, moved to eliminate a carbon tax that consumers paid on fossil fuel products including gasoline, diesel and natural gas. The tax ended officially Tuesday, a day after the providence’s legislative assembly voted to abolish it.

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