What does the announcement of tariffs on all products imported to the United States from Canada mean for Canadian farmers?
Rick White, present and CEO of the Canadian Canola Growers Association (CCGA), addressed his concerns for Canadian canola farmers.
President Donald Trump initially announced a 25 percent tariff on all Canadian imports on Feb. 1, 2025.
“This would be the worst-case scenario in terms of tariffs with the United States as it would like to soften prices on this side of the border, ultimately lowering market rates,” said White.
He explained that annually, Canada and the U.S. trade approximately $6.3 billion worth of Canola Oil and an additional $2 billion of other supplies.
“With that market amount, that is a whole lot of tariffs for somebody to pay.”
On Feb. 13, President Trump announced the possibility of applying reciprocal tariffs to every country that deals with the U.S. trade markets.
“If India places a 2 percent tariff on imported products, the U.S. will replicate that amount and place a 2 percent tariff on products from India,” explained White.
This is the best-case scenario for Canadian farmers, as Canada currently imposes zero tariffs on U.S. imports.
With all the risk and uncertainty in the trade markets, the financial outlook for business owners, farmers, and industry workers is not hopeful.
Whether the tariffs will impact this year’s growing season is still unclear.
“It is a matter of if and when these changes will be made. It is possible that it can affect the crops this year.”
White is not quite sure how Canada will respond if the tariffs go into effect. Trades between the two countries may be discontinued, farm production may slow, or farmers may begin exploring trades with other farming markets.
Fortunately for Canola farmers, most of their demand comes from domestic markets, but international markets with U.S, China and Japan still have a significant impact.
As for supplies, most canola seeds are being grown and sourced in Canada.
The potential tariffs imposed on other tools and supplies will become a problem for Canadian growers.
“Canada is committed to reciprocal tariffs from all imports from the U.S.” explained White.
“Phosphorus, nitrogen, farming imports, chemicals for prop protection, machinery and more could all be a part of the tariff package put forward.”
He said that the canola farmers’ prices ultimately depend on how the Government of Canada responds to the imposed tariffs.
White wants Canadian farmers to know that they are doing all they can to give their support and guidance.
“We are very active at trying to make this work. We want to make sure that farmers’ best interests are in mind for both the industry and economy.”
CCGA is working hard to ensure that farmers’ needs and concerns are addressed during this time of uncertainty.
“Their voices are being heard,” said White.
