U.S. Tariffs on Canadian Cereals Will Hurt North American Consumers

The United States (U.S.) administration’s decision to impose a 25 percent tariff on Canadian cereals imports, will sever cross-border supply chains and damage the long-standing relationship between the U.S. and Canada, warns Cereals Canada.

The national value chain organization is raising alarms about the severe economic impact that the tariffs will have on the Canadian agriculture sector and the national economy. 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.

“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,” said Dean Dias, chief executive officer of Cereals Canada. “Our team is working with governments and stakeholders on both sides of the border to mitigate the impact of the tariffs.” 

Canada and the US have benefitted from reliable two-way trade, with Canada exporting its cereals to the US and importing consumer products that are vital to Canadian farmers, including input supplies and machinery, from the U.S. This disruption stands to not only jeopardize Canada’s export position and farmers’ incomes, but also the relationship between Canada and the U.S.