Canola Council of Canada says U.S. tariffs on Canadian canola industry will have widespread, devastating impacts
(February 1, 2025) – U.S. President Donald Trump announced that tariffs of 25 percent will be applied to imports of a broad range of Canadian goods, including canola seed, oil, and meal, effective February 4, 2025.
“The application of these tariffs on Canadian-grown canola and canola products will be felt across the canola value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “Tariffs will have devastating impacts on farmers, input providers, canola crushing activities and exports of canola seed, oil and meal.”
The U.S. is Canada’s number one market for canola exports and also a market that is highly integrated with the Canadian canola industry. Total export value in 2023 was $8.6 billion, including almost 3 million metric tonnes (MMT) of canola oil valued at $6.3 billion and more than 3.5 MMT of canola meal valued at $2.0 billion.
Canola is the single largest contributor to farm crop cash receipts – grown by nearly 40,000 farmers across the country.
“The damaging blow of these duties will be felt by every canola farmer, starting with the price they receive at delivery and will extend to the full range of their operations, ultimately reducing farm profitability,” says Rick White, Canadian Canola Growers Association (CCGA) President & CEO. “The destructive consequences for our farms, as well as our rural and national economies, are evident.”
A recent analysis completed by the CCC on the impact Canadian-grown canola has on the U.S. economy also draws attention to the economic benefits the U.S. derives from the Canadian canola industry, which averages $11.2 billion (USD) per year and includes $1.2 billion (USD) in wages.
The economic benefits of the trading relationship occur at almost every stage of the canola industry including U.S.-based processing and refining, transportation, bottling and packing, food end uses, livestock and more.
CCGA and the CCC are focused on strengthening the Canada-U.S. trade relationship and amplifying the mutual benefit our nations receive from canola trade through U.S. advocacy activities and engagement with the Government of Canada to advance the Canadian canola industry’s interests.
“The canola industry delivers a true win-win for both Canada and the U.S., and we must do everything we can to restore smooth, predictable, tariff-free canola trade between our two countries,” say Davison and White.
Fertilizer Institute Statement on Trump Announcement of Tariffs
Arlington, VA (February 2, 2025) – Following the announcement by President Donald Trump to place a tariff on Canadian imports, including fertilizer that is essential to successful harvests and affordable food for American families, The Fertilizer Institute President and CEO Corey Rosenbusch released the following statement:
“The Fertilizer Institute stands ready to collaborate with the Trump Administration to spur growth in the fertilizer industry, support U.S. agriculture, and ensure affordable food prices for everyday Americans. Ensuring stable, affordable access to fertilizers is critical to maintaining a globally competitive U.S. agricultural sector, strengthening rural economies, and keeping food prices affordable for hard working American families.
“However, given their effects on the broader farm economy, TFI urges the Trump Administration to exempt Canadian potash and other fertilizers from the tariff order, especially as we approach the critical time of spring planting where nutrient delivery and application are essential for the harvests that fill American’s dinner tables with abundant and affordable food.
“The U.S. relies on imports for over 95% of its potash fertilizer needs, with nearly 90% of that coming from Canada. Canada also supplies U.S. growers with over 8% of our nitrogen fertilizer needs, accounting for 25% of U.S. nitrogen fertilizer imports.
“Potash, a vital source of crop nutrition essential for the health and productivity of U.S. agriculture, is a geographically limited resource produced by only a handful of countries worldwide. While the U.S. produced roughly 400,000 metric tons of potash in 2023, domestic potash consumption that year was approximately 5.3 million metric tons. No substitutes exist for potash as an essential plant nutrient.
“U.S. agriculture is benefited by a strong trade relationship with Canada that provides farmers with reliable access to essential crop nutrients. An open, fair, predictable, and transparent trading environment is vital to the continued growth of a resilient, competitive, and sustainable fertilizer industry for our farmer customers. Any disruption to the intertwined and mutually beneficial cross-border fertilizer trade between the U.S. and Canada will have significant ripple effects, not just for farmers but for the broader food supply chain and ultimately the prices consumers pay at the grocery store.
“TFI recognizes that today’s announcement is tied back to larger policy goals, and we remain committed to working closely with the Administration across several key areas. As a related point, including both phosphate and potash on the U.S. Geological Survey’s List of Critical Minerals would be a decisive step in bolstering domestic supplies of fertilizer for U.S. growers.”
National Farmers Union Urges President to Consider Tariffs' Impact on Farmers
Washington, DC (January 31, 2025) – National Farmers Union (NFU) President Rob Larew today issued the following statement in response to President Trump’s plan to enact tariffs on Canada, Mexico and China:
“The trade actions announced by the president will almost certainly trigger significant retaliation against U.S. agricultural products. This comes at a time of deep uncertainty for farmers—commodity prices are volatile, input costs remain high, and we still lack an updated farm bill.
“One thing is clear: American family farmers and ranchers are always the first to bear the brunt of unilateral trade actions. While we support efforts to hold trading partners accountable and strengthen American manufacturing, our members have already suffered heavy losses from past trade disputes, especially with China, and have lost valuable market access.
“Before taking any action that might further stress farm and rural economies, we urge the president to put a plan in place to protect and support family farmers and ranchers.”
Seeds Canada Provides Update About Tariff Threats
Ottawa, ON (February 4, 2025) - "As everyone is aware, following his success in the 2024 U.S. election and prior to his inauguration on January 20, 2025, President Donald Trump has threatened a 25 percent tariff on Canadian goods. This threat has created an environment of uncertainty on both sides of the border. Seeds Canada has been following this issue very closely, including engaging with counterparts in the U.S. seed industry, trade specific organizations in Canada and with the Canadian government. At the time of writing, a definitive plan has not been released by either country.
"On inauguration day, tariffs were not implemented. Instead, Trump called on U.S. departments to investigate the causes of US trade deficits and the economic and security risks resulting from such deficits, with a particular focus on China, Canada, and Mexico. In the memo issued on the subject, a completion date for the study was given as April 1, 2025. On February 1, 2025, President Trump made good on his threats of tariffs against Canada, signing an executive order which imposes 25% tariffs on all Canadian goods imported into the United States, and 10% tariffs on Canadian energy products. Additional tariffs were levied against Mexico (25%) and China (10%).
"Seeds Canada will continue our monitoring efforts and will utilize member alerts to provide timely updates as we receive them. Of course, it is our goal to avoid tariffs on agricultural goods, including seeds, but also products along the value chain. We will continue to work with partners to advocate for this outcome and ensure the ongoing success of our membership."