Canada’s agriculture trade is making ready for potential disruption as U.S. President-elect Donald Trump proposes a 25% tariff on imports from Canada and Mexico, citing border safety considerations.
With billions of {dollars} in agricultural commerce in danger, the transfer might severely influence exports of pork, beef, grain, and different key Midwestern Ontario commodities which can be closely reliant on cross-border commerce. The tariff proposal has reignited considerations for Canada’s supply-managed sectors, which have traditionally confronted challenges each time commerce agreements just like the USMCA (United States-Mexico-Canada Settlement) are revisited. Aaron Martin, Common Supervisor of the Stratford Chamber of Commerce, emphasised the precarious place these industries might face if quotas are focused.
“Every time NAFTA, or the USMCA as it’s now called, is opened up, that can sometimes hit on quota, which can be detrimental to chicken and dairy operations, so a lot of them are waiting to see what happens along those lines,” he stated.
The ripple results of tariffs might additionally prolong past exports. Martin famous that Canada’s weaker greenback has been advantageous for promoting agricultural commodities at aggressive costs on worldwide markets. Nonetheless, counter-tariffs might upset this steadiness.
“If we have counter-tariffs, that can hurt things like equipment coming this way, or some of our inputs. If we’re buying everything on the international market, the fertilizer prices might go up, so that can bring up our cost of production,” Martin defined.
Gear commerce, specifically, might face challenges. The weaker Canadian greenback usually makes used tools engaging to American consumers, however reciprocal tariffs might complicate these transactions, forcing producers to put money into costlier new tools.
“With our equipment, a lot of our used equipment…when we have a weaker dollar, that goes stateside as well,” Martin stated. “If we now have a decrease greenback or greater tariffs, as a result of we now have reciprocating tariffs, that could possibly be a problem as effectively.”
Midwestern Ontario’s agricultural sector is bracing for uncertainty within the months forward. Stakeholders hope that efforts and the built-in nature of commerce between Canada and the U.S. will assist reduce the influence, however the opportunity of a tariff-driven commerce conflict stays a priority.
