U.S. president Donald Trump announced he has postponed the 25% implementation of widespread tariffs on imports from Canada and Mexico until March 4th. These tariffs would have economic impacts on a variety of industries, including canola. The canola industry in massive in terms of supporting Canadian agriculture, with the economic activity accounting for over $43.5 billion a year. Chris Davison, President and CEO of the Canola Council of Canada, reiterates just how impactful this industry truly is and how important trade relations between Canada & the United States are.
“The United States is Canada's number one market for canola exports. If we look at 2023, total export value to the United States was about $8.6 billion. Over $6 billion of that was related to export value of canola oil, another $2 billion associated with canola meal, and some seed in that mix as well. Canola’s economic activity to the Canadian economy is over $43.5 billion dollars a year with over $16 billion in wages and some 206,000 jobs, and that those impacts are coast to coast.”
With Canada and the United States having such closely knit trade relations, 25% tariffs would have rippling effects on Canadian agriculture and ultimately the Canadian economy. Davison states the true impact of these tariffs will affect canola growers, manufacturers and processors, transportation, and refining; leading to an increase in price on store shelves.
“The (canola) market is highly integrated with the Canadian canola industry and when we look at that, we see that the reality of the economic benefits of our integrated relationship occur at almost every stage both in Canada and the United States. In the United States, there are benefits that are associated with processing and refining, with transportation, with bottling and packing with food and uses with livestock and more. So, canola is really a true win-win for both Canada and the United States.”
With economic benefits of canola helping both the agriculture sector of Canada, but also the manufacturing sector of the United States, there is a great benefit to collaborating and working together to grow the industry which will not only benefit those north of the border, but south of it as well. 25% tariffs will only drive a wedge between the economic opportunity that both countries can gain from trading in such a massive industry as canola.