Some ag goods are included in the tariff list
The trade war between Canada and the U.S. continues to escalate.
Finance Minister François-Philippe Champagne announced on Aug. 25 that as of Sept. 8, Canada will impose tariffs ranging from 15 to 50 per cent on $27.6 billion of U.S. goods.
These tariffs are in response to American tariffs of 50 per cent which came into effect on Aug. 22 following a breakdown in negotiations between the two countries.
The U.S. has also threatened new 50 per cent tariffs on Canadian products beginning Jan. 1, 2027.
The talks collapsed “over a range of issues where the text of a potential deal was at odds with what Canada believed it had agreed to,” Bloomberg reported.
“The terms proposed by the U.S. administration were uneconomic, unfair, and ultimately, unacceptable,” Champagne said Tuesday morning. “They asked too much of Canada and offered too little in return.”
Ag products are included in Canada’s tariff list.
Examples and the tariff rates include:
- Cutter bars for tractor mounting – 15%
- Dairy products – 50%
- Mixes and doughs for preparation of bakers’ wares – 50%
- Honey – 50%
- Fish products – 50%
Goods Canada chose not to tariff is the export of its potash or energy to the U.S.
For context, Canada supplies the U.S. with about 90 per cent of its potash imports.
When asked about this Tuesday morning, Minister Champagne said Ottawa’s response to the U.S. is strategic, proportionate, and keeps Canada’s best interests in mind.
“We know the products that need to be tariffed,” he said while highlighting consultations with different stakeholders.
In addition to the tariffs, Champagne and other ministers announced supports for workers and businesses.
The package of new and existing measures totals $7.5 billion.
For a refresher on tariffs and how they work, reread this Farms.com Q&A with George Frisvold, an ag economist at the University of Arizona.