With U.S. President Donald Trump implementing 25% widespread tariffs on Canadian products this last Tuesday, Canadian agriculture and the canola industry is preparing for the repercussions and weighing their options ahead of the 2025 growing year. The focus now shifts to not only restoring trade relations between Canada and the U.S. but also looking at ways to improve the industry both internationally and domestically. Chris Davison, President and CEO of the Canola Council of Canada, talks about the importance of Canadian canola on the economy and the next steps for the canola industry.
"I think it's important to start with a recognition of the significance of the canola industry to the Canadian economy and that includes $43.5 billion contribution annually to the economy. It includes some 206,000 jobs and more than $16 billion in wages. That's obviously where the significance of this decision by the U.S. comes into play and we've been very clear that the imposition of any tariffs on Canadian canola and canola products would have a negative impact.”
These tariffs will have rippling effects on the canola industry, affecting the entire canola value chain from crushing plants, canola oil refineries, canola meal plants, transportation, and everyone involved in the growing of canola including seed and chemical companies, the agricultural stores that sell them, and the producers that grow canola. Davison talks on the steps that the canola industry will need to take forward.
“I think we have to look at this through a few different lenses, sort of short, medium and longer term. I think our objective now obviously has to be to restore smooth, predictable, tariff-free trade between Canada and the United States as quickly as possible. Those integrated supply chains depend and rely on smooth bilateral trade between our two countries. Then I think as we move beyond that, we can talk about other things we can and should be doing both domestically and internationally to improve.”
The Canadian canola industry has always look at ways to improve both with international trade to other countries, but also within our borders. Building crushing plants and canola oil refineries will help Canadian growers bolster the agriculture economy, without having to leave the country.
However, with the United States being Canada's number one trade partner in canola, accounting for nearly $1.2 billion in wages and thousands of jobs south of the border, restoring trade relations will be top priority to stabilize the canola industry, Canadian agriculture, and the economy as a whole.
U.S. President Donald Trump did pause for 30 days some of the new duties on Canada and Mexico Thursday and reduced potash levies to 10 per cent.