The Canadian Federation of Agriculture is warning that the breakdown in Canada-U.S. trade negotiations and escalating trade measures could create fresh uncertainty for farmers and disrupt the highly integrated North American agriculture and food system.
The CFA, which represents more than 190,000 family farms across Canada, said in a statement Saturday the two countries share one of the world’s most important agricultural trading relationships, with farmers and agribusinesses relying heavily on cross-border flows of food, feed, fertilizer, equipment and other key inputs.
“For generations, Canadian and American farmers and agri-businesses have worked as partners, supplying food, feed, fertilizer, equipment, and other essential inputs that support a strong North American food system,” said CFA President Keith Currie. “The breakdown in negotiations and escalation of new tariffs create uncertainty at a time when farmers are already facing significant challenges, including rising input costs, market volatility, and increasingly unpredictable weather.”
Canada-U.S. trade talks collapsed late Friday after several days of intensive negotiations that had initially appeared to be moving toward an agreement. With no deal reached, the U.S. imposed 50% tariffs on roughly $20 billion worth of Canadian goods beginning Saturday. Canada responded by suspending further negotiations and announcing dollar-for-dollar retaliatory tariffs on U.S. goods, which are scheduled to take effect Sept. 8. As of Monday morning, no new negotiating sessions have been announced.
Canadian primary agriculture is still mostly exempt from the American levies but the CFA statement said escalating tariffs could disrupt supply chains that have been built over decades, raise production and consumer costs, reduce food affordability, and weaken the competitiveness of agricultural businesses on both sides of the border.
Canadian and U.S. producers depend on efficient cross-border trade not only to supply their domestic markets but also to remain competitive internationally, the CFA said. Interruptions to that trade could have broader consequences for processors, workers, and consumers throughout North America.
“Farmers and consumers stand to lose when trade becomes more difficult, more expensive and more unpredictable,” Currie said.
The CFA is urging Ottawa and Washington to return to the negotiating table and reach a swift resolution that protects the competitiveness of North American agriculture while limiting unintended consequences for producers, supply chains, and food prices.
