Canada imposes retaliatory tariffs on U.S. pork, poultry as trade tensions rise
CANADA – Canada is set to implement a 25% tariff on U.S. poultry and pork in response to new tariffs imposed by President Donald Trump.
A similar tariff on U.S. beef is expected soon, escalating trade tensions between the two countries.
The decision follows Trump’s move to impose tariffs on steel and aluminum imports from Canada and Mexico.
The measure has reignited trade disputes that had previously been settled under agreements like the United States-Mexico-Canada Agreement (USMCA).
Canada and Mexico account for nearly 40% of U.S. pork exports, making them crucial markets for American pork producers.
In 2024, U.S. pork exports to Canada were valued at US$871 million, while shipments to Mexico reached a record US$2.55 billion.
The National Pork Producers Council (NPPC) has warned that these retaliatory tariffs could strain long-established trade relationships. Mexican President Claudia Sheinbaum is also reportedly considering similar tariffs on U.S. pork, which could further impact American exports.
Past trade disputes have shown that tariffs can lead to permanent shifts in market dynamics.
Between 2018 and 2019, Mexico imposed tariffs of up to 20% on U.S. pork during Trump’s previous term.
The result was a US$1.13 billion loss in U.S. pork exports before an agreement was reached in 2019.
The U.S. Meat Export Federation has cautioned that countries affected by trade conflicts tend to seek alternative suppliers, reducing their reliance on U.S. agricultural products.
Farmers and trade advocates have voiced concerns about the potential fallout from the new tariffs.
Farmers for Free Trade, a leading agricultural advocacy group, issued a statement warning that American farmers could face serious financial consequences.
“Canada, Mexico, and China purchase half of all U.S. agricultural exports. These markets are essential to American farming, and placing tariffs on them could be devastating,” said Bob Hemesath, chairman of the organization’s board.
Farmers are already dealing with high input costs, declining crop prices, and global supply challenges.
The introduction of additional tariffs could make American pork less competitive, allowing South American producers to expand their market share.
With Canada’s tariffs taking effect on Tuesday and Mexico likely to follow, the U.S. pork industry could see major disruptions.
Analysts warn that once market share is lost, it can be difficult to recover, especially if trading partners secure long-term deals with other suppliers.
Industry groups are urging the administration to reconsider its trade approach to prevent long-term damage to American agriculture.
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