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By Alice McFarlane

Tariff affects both sides of the border

Farm groups says U.S. tariffs on Canadian grain will cost farmers and families on both sides of the border

Feb 3, 2025 | 3:35 PM

The U.S. is Canada’s sixth largest market for non-durum wheat, fourth largest market for durum wheat, second largest market for barley, and largest market for oats.

Dean Dias with Cereals Canada is raising alarms about the severe economic impact that the tariffs will have on the Canadian agriculture sector and the national economy.

“The implementation of significant tariffs on Canadian cereal grains and ingredients will drastically impact their availability in North America, leading to increased costs for food processors, lower returns for farmers, and higher grocery bills for American families,” Dias said. “Our team is working with governments and stakeholders on both sides of the border to mitigate the impact of the tariffs.”

Canada and the U.S. have benefitted from reliable two-way trade, with Canada exporting its cereals to the U.S. and importing consumer products that are vital to Canadian farmers, including input supplies and machinery, from the U.S.

Dias said the disruption stands to not only jeopardize Canada’s export position and farmers’ incomes, but also the relationship between Canada and the U.S.

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Tariff affects both sides of the border

Farm groups says U.S. tariffs on Canadian grain will cost farmers and families on both sides of the border

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“Canadian ingredients are an integral part of U.S. food processing,” he said. “The U.S. currently depends on Canada for over half of its durum wheat use and over half of its oats use and, unfortunately, these tariffs will ultimately be passed on to American consumers.”

The U.S. administration’s decision to impose a 25 per cent tariff on Canadian grain and grain products, set to take effect tomorrow, will drive up the cost of essential food staples for American families, according to Grain Growers of Canada (GGC) executive director Kyle Larkin.

“This isn’t just a tariff on Canadian farmers—it’s a tax on every American family purchasing loaf of bread, oatmeal, canola oil, and other food staples at the grocery store,” Larkin said. “A 25 per cent tariff is, in effect, a 25 per cent tax on American consumers.”

Larkin said it isn’t just a tariff on Canadian farmers — it’s a tax on every American family purchasing loaf of bread, oatmeal, canola oil, and other food staples at the grocery store.

These imports include wheat for bread, durum for pasta, oats for food products, canola for oil and biofuels, barley for feed and brewing, and other grain and grain products for widespread usage.

As of 2023, Canadian wheat exports to the U.S. totaled over $1 billion, oats reached $580 million, barley accounted for over $200 million, and canola exports — crucial for cooking oil and biofuels — were valued at $8.5 billion.

Canadian agri-food producers deplore the decision of the United States to implement tariffs on imports from Canada and Mexico.

Canadian Agri-Food Trade Alliance (CAFTA) President Greg Northey said they have always advocated for free and open trade in agriculture and agri-food to benefit consumers, farmers and producers.

“These tariffs will drive up costs, disrupt supply chains, and harm American, Canadian, and Mexican consumers and producers,” Northey said.

North America’s integrated supply chains set the standard for global trade, allowing farmers and food producers to compete on the world stage while keeping prices affordable for families.

Northey said the unnecessary tariffs threaten to unravel decades of cooperation, raising costs, creating instability, and putting livelihoods at risk.

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alice.mcfarlane@pattisonmedia.com

On X: @farmnewsNOW