The intense policy dynamic in the U.S. presents warning signs for Canada

Apr 25, 2025

The importance of U.S. policy actions and its agri-food market for Canada requires a broad knowledge and understanding of its many complex components. It encompasses the dynamics of U.S. federal government finance, domestic economic policy, and trade policy. These factors are continuing in flux and deepening, creating increased volatility and risks to the Canadian agri-food economy.

An Independent Agri-Food Policy Note released by Agri-Food Economic Systems develops the conceptual and empirical background to help understand the situation, and help Canadian agri-food prepare for what may be coming.

“The new U.S. administration is engaged in a wrenching struggle to deliver on promised tax cuts and deportations, in the face of already burdensome federal deficits and debt and an economy operating at full employment,” says Douglas Hedley, Agri-Food Economic Systems research associate and co-author of the paper. “What’s at stake is the potential for sharp changes in inflation, interest rates, currency valuations, and US-international trade relations -- and that could just be the beginning.”

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