Canadian farmers are bracing for a dual trade crisis as China’s tariffs on $2.6 billion worth of agricultural exports took effect Thursday, while U.S. duties on additional Canadian goods loom. The tariffs, targeting canola oil, meal, peas, pork, and aquatic products, compound challenges for farmers already grappling with low crop prices and rising input costs.
China’s Tariffs:
100% duties on $1 billion of canola oil, meal, and peas.
25% duties on $1.6 billion of pork and aquatic products.
Unprocessed canola seed was excluded, but China’s anti-dumping investigation into seed exports adds further uncertainty.
U.S. Trade Tensions:
President Donald Trump delayed a 25% tariff on some Canadian goods until April 2, but steel and aluminum duties are already in place.
Reciprocal tariffs on dairy and lumber could further strain trade relations.
Impact on Farmers:
Spring Planting: Farmers face financial strain as seed and input costs are locked in, with no guarantee of profitable sales.
Equipment Sales: Machinery manufacturers report reduced purchases as farmers prioritize low-interest loans over major investments.
Loan Surge: The Canadian Canola Growers Association noted a spike in applications for government-backed loans, reflecting widespread financial anxiety.
Industry Reaction:
Tara Sawyer (Calgary Farmer): “This is a terrible time. We have no choice but to move forward.”
Dave Gallant (CCGA): “Farmers are concerned about selling their product and what prices will be.”