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Tariffs

Resilient, Sustainable Food Systems Are Canada's Best Defence Against American Tariffs

Strategic Insights

— 2 min read

As Canada's agriculture sector reeled from the sudden imposition of tariffs by the Trump administration in the United States, scholars from the Common Ground Network sounded the alarm on the devastating impact of trade tensions on Canadian agriculture and food systems. With agricultural products accounting for a mere fraction of defence needs, the tariffs have sent shockwaves through the industry, leaving many farmers and producers struggling to adapt to the changing landscape.

Key Takeaways:

  • A survey conducted by RealAgristudies of 660 Canadian farmers revealed that 59% expected a negative impact on their business, rising to 88% in the livestock sector.
  • U.S. Department of Agriculture data showed an 8-5% drop in beef and pork exports in early 2025 compared to 2024, with fed cattle prices plummeting 22.6% and estimated revenue losses of C$4.02 billion.
  • Canola exports are also expected to decline significantly, potentially threatening the economic sovereignty and food access of Indigenous farmers and remote communities that rely on cross-border trade.
  • The tariffs could cut Canada's GDP by 3% and fuel lasting price volatility, while also disrupting the country's ability to meet its net-zero emissions targets by 2050.
  • American farmers are also feeling the pain, with Canada's retaliatory tariffs on goods like cheese and apples prompting Canadian buyers to shift to other suppliers and threatening long-term market share loss for U.S. producers.
  • The tariffs have strained integrated supply chains, with American processors facing higher costs for Canadian products like canola oil, beef, and pork.
  • Canada's 15 trade agreements provide access to 51 countries, representing 66% of global GDP, offering opportunities for diversifying exports and leveraging trade alliances like the Ottawa Group to voice concerns on the global stage.
  • Investing in agricultural innovation, improving transportation networks, and supporting local food systems can build resilience against tariff shocks and reduce supply chain bottlenecks.

Statistics:

  • 59% of Canadian farmers expected a negative impact on their business, rising to 88% in the livestock sector.
  • 8-5% drop in beef and pork exports in early 2025 compared to 2024.
  • 22.6% decline in fed cattle prices.
  • Estimated revenue losses of C$4.02 billion.
  • 67% of Canadians are buying more local products.
  • 76% are avoiding U.S. goods.
  • 43% have changed their grocery habits significantly.
  • Tariffs could cut Canada's GDP by 3%.
  • Tariffs could disrupt Canada's ability to meet its net-zero emissions targets by 2050.

Sources:

  • RealAgristudies survey of 660 Canadian farmers.
  • U.S. Department of Agriculture data.
  • The Conversation -- Canada -- By Èërick Duchesne, Professeur, Département de science politique, Université Laval.
  • The Conversation -- Canada -- Resilient, sustainable food systems are Canada's best defence against American tariffs -- https://theconversation.com/resilient-sustainable-food-systems-are-canadas-best-defence-against-american-tariffs-257946.

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