The U.S. and Canada announced dueling tariffs on imports going back and forth between the neighboring countries after U.S.-Mexico-Canada Agreement negotiations broke off. Virginia Houston, the senior director of government relations for the American Farm Bureau Federation, said the relationship is evolving by the day.
“We know Canada and the U.S. were negotiating in a hope to avoid those tariffs, but unfortunately, talks fell apart at the last minute, and a 50 percent tariff on Canadian imports into the U.S. went into effect. Canada retaliated with tariffs of their own, matching the U.S. tariffs dollar-for-dollar, and those tariffs are set to go into effect on September 8th.”
Houston said Canada notably targeted some U.S. agricultural products.
“Dairy is probably the biggest ag product they have put retaliatory tariffs on, as well as some ag equipment. Originally, Canada announced they would tariff U.S. seafood exports to Canada, which is about a $1 billion industry in 2025. However, Canada announced that they would not tariff U.S. seafood exports. That supply chain is very highly integrated.”
Houston said the future of USMCA remains uncertain but negotiation is still possible.
“I am still hopeful for USMCA. So, you know, right now the U.S. has been negotiating or not negotiating in a bilateral fashion. So separately with Mexico, separately with Canada, but they haven’t come to the table altogether. Farm Bureau is still pushing for a renegotiated USMCA, and we are still pushing the administration in Canada to come back to the table and find a resolution that de-escalates this tariff battle.”