U.S. President Donald Trump has followed through on his threat to impose 25 per cent tariffs on imports from Canada and Mexico.
Trump signed an executive order on Saturday afternoon to establish 25 per cent across-the-board tariffs on Canada, with a lower 10 per cent carve-out for Canadian natural gas, oil and electricity.
The tariffs are to take effect Tuesday, February 4.
The order includes a retaliation clause that says the tariff rates could rise if Canada retaliates.
Prime Minister Justin Trudeau announced 25 per cent retaliatory tariffs on C$155 billion worth of imports from the U.S. a few hours later — $30 billion worth starting February 4, with the remaining $125 billion 21 days later. Several provinces have also announced their own measures.
Trump signed similar executive orders on Saturday applying 25 per cent tariffs to Mexico and 10 per cent tariffs on imports from China.
Canadian producer groups sent out statements over the weekend in response to the tariff order.
The Canadian Cattle Association (CCA) and National Cattle Feeders’ Association (NCFA) says they are “extremely disappointed that 25% tariffs will be implemented on Tuesday, February 4 on all products imported into the United States from Canada. We will continue working together with the Government of Canada and partners on both sides of the border to remove tariffs on live cattle and beef.”
“The application of these tariffs on Canadian-grown canola and canola products will be felt across the canola value chain,” says Chris Davison, Canola Council of Canada (CCC) president and CEO. “Tariffs will have devastating impacts on farmers, input providers, canola crushing activities and exports of canola seed, oil and meal.”
The U.S. is Canada’s number one market for canola exports and also a market that is highly integrated with the Canadian canola industry. Total export value in 2023 was $8.6 billion, including almost 3 million metric tonnes (MMT) of canola oil valued at $6.3 billion and more than 3.5 MMT of canola meal valued at $2.0 billion.
More to come.
Stay tuned to RealAgriculture in the coming days for plenty of coverage of the impact of Trump’s tariffs on our agriculture industry.
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