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Canadian farm groups warn US tariff fight could disrupt trade flows

Canadian agriculture groups say the collapse of US-Canada tariff talks and new duties could hit an export relationship worth about $70 billion in annual trade for the United States.

Reported · Written up by our desk · Agriculture

Canadian agriculture groups are warning that a breakdown in trade relations with the United States could end up harming Canada’s farm sector and wider food system, even as some parts of agriculture are not immediately exposed to the latest tariff moves, according to World Grain.

World Grain reports that the concern follows the collapse of US-Canada trade negotiations on Aug. 22, after which the Trump administration imposed 50% tariffs on $20 billion of Canadian goods. Canadian Prime Minister said Canada would retaliate dollar-for-dollar against the United States.

Wheat Growers president Gunter Jochum said the United States is Canada’s largest customer and biggest export market, and that Canadian farmers depend on market access rather than hoping it resolves on its own. He urged Ottawa to treat agriculture and its cross-border supply chains as part of a broader Team Canada effort instead of letting the sector become collateral damage in a wider trade dispute.

World Grain adds that Canada and the United States share one of the world’s most important agricultural trading relationships, with Canada described as the second largest agricultural trading partner for the United States, based on about $70 billion in annual trade flow. Jochum cautioned that trade wars tend to spread costs across many while benefits accrue to few, and warned farmers should not be treated as bargaining tools.

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