My money is on Newton's Third Law still being valid, even in New Zealand: every force has an equal and opposite force.
The weight of the sled is balanced by an upward reactive force that is due to compressing the snow, earth and rock beneath the runners.
The molecular interaction betwen the runners and the snow (i.e friction) generates a pair of forces as long as there is relative motion.
One of these forces acts on the sled, and causes an acceleration that opposes the forward motion.
The other force acts on the Earth to accelerate its rotation. Fortunately, it is massive enough to not be affected too much. (In any case, this is just restoring the momentum that the dogs originally took away by starting the sled previously.) The change of momentum of the Earth is ignored for problems like this, but it is the paired force with the retardation.
Inertia is not properly a force. It is the kinetic energy (energy due to motion). In this case, the inertia the sled got when it was started, is removed by the deceleration, and goes into warming up the runners and the snow.
Actually, I envisaged the sled moving from west to east because of the diagram. The momentum imparted to the Earth is in the direction the sled accelerates and decelerates, not necessarily in line with its direction of rotation.
You could ask your teacher what happens when the sled is steered round a curve at constant speed. In that case, the direction of the force against the side of the runners keeps changing, which is interesting.