President Trump announced new 50 percent tariffs on many Canadian imports, heightening trade tensions with America’s second-largest agricultural export market.
Higher Canadian Tariffs Raise Concerns for U.S. Agriculture
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Canada purchases billions of dollars in U.S. farm products each year, making it America’s second-largest agricultural export market. The administration says the new tariffs are intended to protect U.S. industries and counter unfair Canadian trade practices, but agricultural leaders worry the dispute could trigger retaliation and further disrupt markets already facing tight margins and high production costs.
The tariffs cover alcoholic beverages, dairy products and certain food items, while potash used in fertilizer is exempt.
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Transcript
This week, President Trump heightened trade tensions with America's second-largest trading partner, announcing new 50% tariffs on many Canadian imports. The administration says the move is designed to protect the nation’s industries and push back against what it calls unfair Canadian trade practices.
President Donald Trump – “Canada’s been very, very tough on us over the years. For many years, and no other president has done anything about it.”
Canada is also America's second-largest agricultural export market, purchasing billions of dollars in U.S. farm products every year. Some in the agricultural sector worry the latest trade dispute could invite new Canadian retaliation or further disrupt markets already facing tight margins and higher production costs.
PM Mark Carney – Canada: “We will look at all options in terms of how we would respond if they do come into effect. This is part of the negotiations, so the first objective is to get a comprehensive agreement that benefits both countries.”
Agriculture is one of the first industries to be caught in the middle when international trade disputes start. The new tariffs target alcoholic beverages, dairy products, and certain food items. Potash used for fertilizer is exempt from the duties.
For Market to Market, I’m Laurel Bower.
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