Exporters worried about the possibility of increase in duty on Canadian products in America

27-Jan-2025 12:33 PM

It seems like there’s a lot of uncertainty around the potential impact of the Trump administration’s proposed 25% customs duty on Canadian exports, especially in the agricultural sector.

For exporters, the possibility of this duty is quite concerning, particularly when it comes to oats, which have a heavy reliance on the U.S. market. With 83% of Canadian oats going to America, any kind of tariff could really disrupt that trade.

Wheat and canola exports, while still facing challenges, seem to be a bit more insulated in comparison.

Wheat, especially the hard spring variety, has strong markets in other regions like Asia and the Middle East, which might help cushion the blow. But, as you pointed out, even small impacts can add up over time and affect producers, particularly in the western parts of Canada.

It will definitely be interesting to see how this develops after the proposed duty kicks in on February 1, 2025. What do you think the long-term consequences might be for these agricultural sectors if this duty is implemented?