Tariffs threaten integrated Canada-U.S. food supply chains: Industry groups
Food security at risk on both sides of border, industry groups warn
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OTTAWA — Donald Trump’s threatened 25% tariff on Canadian grain is little more than a 25% tax on American families, a leading Canadian agricultural group says.
The Grain Growers of Canada says the tariffs would see Americans paying more for products made with the $17 billion worth of Canadian grain imported into the U.S. annually.
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“This isn’t just a tariff on Canadian farmers — it’s a tax on every American family purchasing loaf of bread, oatmeal, canola oil, and other food staples at the grocery store,” association executive director Kyle Larkin said.
“A 25% tariff is, in effect, a 25% tax on American consumers.”
Canadian canola exports alone — used in biofuels and cooking oil — amounted to about $8.5 billion in 2023.
Canada’s agriculture industry would likely bear much of the impact from the tariffs.
The Prince Edward Island Potato Board said that around half of their producer’s crop ends up in the United States, and that most domestically-produced french fries end up being shipped south.
“These unfair and punitive tariffs will have a negative impact on Prince Edward Island potato farms and farm businesses and will raise the cost of food for our American neighbours,” said a statement from the board.
“Prince Edward Island has been supplying the U.S. with high quality potatoes for generations; unfortunately, these completely unnecessary trade actions brought by President Trump endangers that long-standing relationship.”
A joint statement Monday from the Canadian Cattle Association (CCA) and the National Cattle Feeders Association (NCFA) decried the tariffs, and the $3.6 billion daily cross-border trade of beef and live cattle.
“The integration of the North American live cattle and beef supply chain is unlike anywhere in the world, contributing to both food security and local and regional food systems,” said CCA president Nathan Phinney, who added Canada and the U.S. enjoy the world’s largest two-way trade market.
“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.”
Taking concerns from the feedlot to the table, Restaurants Canada likewise expressed concern over a possible trade war.
“We support the federal government in doing everything in its power to protect Canada’s interests and resolve the dispute as quickly as possible,” read a statement from Restaurants Canada CEO Kelly Higginson.
She added the Canadian and U.S. food industries are so deeply intertwined that impacting one will invariably affect the other.
“We urge the government to consider exempting food and food packaging from retaliatory tariffs, as these essential, perishable items will only exacerbate inflation.
And with talk of pandemic-era type supports for those impacted by the trade war, Higginson urged the federal government to rethink how those plans play out.
“If the trade dispute results in major and sudden job loss, we urge the government to prioritize job retention through wage support, like it did during COVID, rather than immediately resorting to E.I. measures,” she said.
“Direct support will protect workers, sustain businesses, and reduce pressure on food banks, enabling recovery once the tariffs are lifted.”
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