Canadian ag groups are weighing in on the tariff crisis.

Over the weekend, U.S. President Donald Trump followed through on his tariff threat, slapping Canada with a 25% tariff on just about all goods effective Tuesday, February 4. Canada retaliated with 25% tariffs on $155 billion worth of American goods.

The Canadian Federation of Agriculture, representing over 190,000 family farms across Canada, says it is extremely disappointed and concerned to see the widespread 25% tariffs implemented by the U.S. “These tariffs are going to have negative consequences for farmers and consumers on both sides of the border. There’s no question.” said CFA President Keith Currie.

“Our agriculture sectors rely on each other, not just to sell products to one another, but also to provide essential inputs to grow food such as fertilizer. No one wins in a trade dispute between Canada and the U.S. except for our competitors around the world. Tariffs are quite simply, bad business.”

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According to the CFA, roughly 70% of Canadian goods exported to the U.S. are used in the production of other goods. The organization says tariffs will disrupt these highly integrated supply chains, resulting in price increases for consumers and negatively affecting the competitiveness of North American agriculture.

Meanwhile, the Dairy Farmers of Canada, representing over 9,000 Canadian dairy farmers, issued a statement on the U.S. tariffs, saying it hopes the situation is resolved quickly.

“Like all Canadians, our nation’s dairy farmers are deeply concerned about the far-reaching impacts that the high tariffs imposed by the United States on Canadian products will have on consumers, industries, and economies on both sides of the border,” said David Wiens, President of Dairy Farmers of Canada. “Feeding Canada is what we do, and our dairy farmers are always ready to do their part in ensuring food security for all Canadians.”

The Canadian Canola Growers Association (CCGA) says the tariffs will have a “devastating” effect on farmers. “The application of these tariffs on Canadian-grown canola and canola products will be felt across the canola value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “Tariffs will have devastating impacts on farmers, input providers, canola crushing activities and exports of canola seed, oil and meal.”

The U.S. is Canada’s number one market for canola exports, It’s also a market that is highly integrated with the Canadian canola industry, with total export value reaching $8.6 billion in 2023. That includes almost 3 million metric tonnes (MMT) of canola oil valued at $6.3 billion and more than 3.5 MMT of canola meal valued at $2.0 billion.

“The damaging blow of these duties will be felt by every canola farmer, starting with the price they receive at delivery and will extend to the full range of their operations, ultimately reducing farm profitability,” says Rick White, CCGA President & CEO. “The destructive consequences for our farms, as well as our rural and national economies, are evident.”

The Canadian Cattle Association says it is also “extremely disappointed” by the U.S. tariffs. In a release, it points out that the Canadian beef industry has long been a strong advocate of free and open trade and will continue to be.

“The United States and Canada have the largest two-way trade in live cattle and beef in the world. American-born cattle are fed in Canadian feedlots before returning to the United States for processing. Tariffs would greatly increase the cost of processing cattle and ultimately the cost of beef on both sides of the border,” says CCA President Nathan Phinney. “We expect our trade agreements to be respected and honoured. International trade is advanced through negotiation and compromise, as was done with the revision of NAFTA by President Trump himself.”

Will Lowe, Chair of the National Cattle Feeders’ Association, adds that a substantial number of live cattle are transported from Canada to the United States for processing. U.S. processing plants rely on Canadian live cattle to maintain maximum processing capacity, providing significant economic benefits and job opportunities to the northern states.

“The impact of this tariff on cattle producers will be felt immediately and severely. The cattle sector is a highly integrated North American market. When dealing with live animals you are not able to pivot quickly, and this tariff could cripple the world-renowned beef industry on both sides of the border,” said Lowe.

The beef industry says it will be seeking an exemption to the tariffs, and advocating for any relief support necessary for Canadian beef producers.

The federal government has released its list of products from the United States subject to 25% tariffs. You can read the list here.

This is a developing story. Check back for updates. 

 

 

 

 

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