UPDATED – The organization representing Saskatchewan farmers is calling on the Federal government to protect agricultural inputs as the trade war between Canada and the U.S. escalates.
The federal government will match the United States dollar for dollar and product by product with retaliatory tariffs, the federal minister of finance announced Tuesday morning.
“For affected honey producers, the impact is immediate,” said Bill Prybylski, president of Agricultural Producers Association of Saskatchewan (APAS) in a news release, Tuesday.
“A 50 per cent tariff effectively closes the U.S. market, while displaced sales could place downward pressure on Canadian prices.”
Uncertainty around markets, inputs and retaliation make it tough for farm businesses to plan, invest and manage risk, he added.
Some Canadian farmers, such as beekeepers, find themselves hit with massive U.S. tariffs, while agricultural sectors not directly implicated may feel knock-on effects like machinery costs.
On Saturday, the U.S. imposed 50 per cent tariffs on $27.6 billion of Canadian goods, including dairy, honey, alcohol and wool and wool products, after the two countries failed to reach a trade deal after days of negotiations.
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What is tariffed?
Starting Sept. 8, Canada will levy counter-tariffs of 15, 20 and 50 per cent on products drawn from those targetted by U.S. Section 338 and Section 232 tariffs.
The duties cover $27.6 billion of American goods in sectors such as dairy, agriculture equipment, steel, pulp and paper and those that are “most impacted by U.S. tariffs,” a federal news release said.
Agricultural goods implicated include:
Milk, cream and dairy ingredients at 50 per cent.
Natural honey (50 per cent).
Various types of cheese at 25 per cent.
Molasses (50 per cent).
Baking mixes and doughs (50 per cent).
Wool products.
Various types of fish and fish products (25 per cent).
Harvesting or threshing machinery —mowers and parts — at 15 to 25 per cent.
Numerous steel and aluminum products are also tariffed, which could have implications for farm equipment.
The federal government also announced a $7.5 billion aid package for affected businesses and workers.
Farmers shouldn’t “pay twice”: APAS
“Canada must defend its economic interests, but farmers should not be required to pay twice—first
through lost export markets and then through higher production costs,” said Prybylski.
“Agricultural machinery, replacement parts and essential inputs must be protected, particularly where Canadian alternatives are not readily available.”
APAS called for the federal government to consult with agriculture groups, exclude essential farm machinery and parts, and to provide assistance for honey producers and other affected sectors.
It also called on the government to resume negotiations with the U.S.
The Association of Equipment Manufacturers also called on both governments to resume talks and to remove “harmful tariffs.”
“Canada and the United States have built the world’s most integrated manufacturing ecosystem, supporting jobs, driving investment, and powering economic growth across North America,” said Kip Eideberg, senior vice-president of government and industry relations, in a statement to Glacier FarmMedia.
The association represents manufacturers on both sides of the border.
“Continued trade uncertainty and escalating tariffs create serious challenges for manufacturers and the businesses that depend on cross-border supply chains,” Eideberg said.