Canadian Tariffs on US Ag Products

OMAHA (DTN) -- The list of $30 billion in U.S. products facing retaliatory tariffs from Canada starting Tuesday includes a long list of food and agricultural products.

The Canadian government on Sunday released a list of products to be subject to tariffs in retaliation for President Donald Trump's announced 25% tariffs on all Canadian products except energy, which will be subject to 10% tariffs.

Commodity markets and stock markets each opened down in early trading Monday in reaction to the tariff announcements over the weekend.

The Canadian list, which will be effective Tuesday, includes all kinds of agricultural products including poultry, pork, dairy, wheat, barley, rye, oats, rice, sunflowers, canola, sugar products, chocolates, pasta, fruits, vegetables, pasta, soups, wine, beer, distilled liquors, tobacco and wood products. Also included were animal feed supplements and harvesting equipment.

The list did not include beef, which is an $824 million market. Also not on the list were corn or soybeans, but the U.S. exports only small volumes of those commodities to Canada.

U.S. baked goods, fresh vegetables, fruit, ethanol, processed food, dairy products and pet food are all billion-dollar export products to Canada, USDA data highlights. Canada is the largest export market for U.S. baked goods, with $2.8 billion in sales in 2023. Canada was also the top market for U.S. vegetables, at $1.97 billion. Canada accounts for nearly $800 million in pork imports and $500 million in poultry imports from the U.S. as well.

The Canadian announcement said, "These countermeasures are effective immediately and will remain in place until the U.S. eliminates its tariffs against Canada. Canada's countermeasures do not apply to U.S. goods that are in transit to Canada on the day on which they come into force."

The Canadian government said in a news release it "intends to impose tariffs on an additional list of imported U.S. products, worth $125 billion. This second list will be made available in the coming days, for a 21-day public comment period prior to implementation. It will include products such as passenger vehicles, trucks and buses, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy products, and more."

Canadian Minister of Finance and Intergovernmental Affairs Dominic LeBlanc said, "Canada and the U.S. are more than just trading partners. We are highly integrated economies -- and this has greatly benefitted both of our countries, for more than 150 years. We want to preserve this relationship, but in the face of the unjustified U.S. tariffs against Canadian goods, we are taking action to protect our economy, our workers and our businesses. We will always stand for Canada."

Doug Ford, the premier of Ontario, announced Sunday that the Liquor Control Board of Ontario (LCBO) will pull all American products from its shelves starting Tuesday. Ford said on X that the LCBO sells nearly $1 billion in American alcohol products. "Not anymore."

Canadian and Mexican officials had suggested they will work together when it comes to retaliatory tariffs after President Donald Trump imposed universal tariffs on both countries and China -- the three biggest markets for U.S. agricultural commodities. The two countries' leaders also implied they would target products from Republican-led states.

Mexico, as of early Monday, had not released a list of products that would face import tariffs.

The New York Times reported the Chinese Ministry of Commerce said it would bring a legal case to the World Trade Organization (WTO) as well as "take corresponding countermeasures" -- though no specific retaliatory tariffs were immediately announced. A WTO case could be futile, given the time it takes and the lack of appellate judges that have neutered the organization's value in settling trade disputes.

Also on Sunday, The Fertilizer Institute wrote Trump urging an exemption on tariffs for Canadian potash and other fertilizers "especially as we approach the critical time of spring planting where nutrient delivery and application are essential for the harvests that fill American's dinner tables with abundant and affordable food." TFI noted, "The U.S. relies on imports for over 95% of its potash fertilizer needs, with nearly 90% of that coming from Canada. Canada also supplies U.S. growers with over 8% of our nitrogen fertilizer needs, accounting for 25% of U.S. nitrogen fertilizer imports."

OVER THE WEEKEND

Trump signed three executive orders Saturday imposing 25% tariffs on Canada and Mexico and 10% tariffs on China. Petroleum imports from Canada will face a 10% tariff. The tariffs will go into effect on Tuesday. Trump stated the increase in "illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA)."

On social media Sunday morning, Trump said, "Canada, Mexico and China, and too many others to name, continue the decades long RIPOFF OF AMERICA, both in regards to TRADE, CRIME AND POISONOUS DRUGS that are allowed to so freely flow into AMERICA."

Trump added, "MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!" He stated, "THIS WILL BE THE GOLDEN AGE OF AMERICA. WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!)."

In a separate post, Trump said the U.S. spends billions of dollars to subsidize Canada. "There is no reason. We don't need anything they have. We have unlimited energy, should make our own cars, and we have more lumber than we can ever use. Without this massive subsidy, Canada ceases to exist as a viable country. Harsh, but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military production for the people of Canada -- AND NO TARIFFS!"

DTN Political Correspondent Jerry Hagstrom contributed to this report.

See, "Canada, Mexico, Look to Target Red States With Retaliatory Tariffs," https://www.dtnpf.com/…

Also see the Canadian tariff notice: https://www.canada.ca/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

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