Canada Faces Growing Trade Tensions with U.S.: Diversification Becomes Key Priority

As political and economic shifts take shape in the United States, Canadian agriculture leaders are urging a renewed focus on trade diversification to reduce exposure to U.S. volatility.

Dr. Al Mussell, Research Lead at Agri-Food Economic Systems and Senior Research Fellow at the Canadian Agri-Food Policy Institute, highlights that recent U.S. policy changes — including tax cuts, reduced government spending, and potential changes to food inspection systems — could have serious implications for Canadian exports, particularly in the pork sector.

The call for diversification includes not only expanded trade with third countries, but also increased interprovincial trade within Canada. Products currently moving between Canada and the U.S. could be redirected across provinces to create new domestic opportunities and reduce vulnerability to international tensions.

Another major concern is the potential weakening of U.S. food inspection systems. Reports indicate the U.S. Food and Drug Administration may shift food safety oversight — including meat inspection — to state or even municipal authorities.