Canada suspends imports from Smithfield Foods amid trade tensions

CANADA – Canada has halted imports from Smithfield Foods’ largest pork processing plant in Tar Heel, North Carolina.

The decision follows growing tensions between Washington and Ottawa over trade tariffs. 

While the U.S. Department of Agriculture (USDA) stated that the suspension aligns with standard procedures and is not linked to ongoing trade disputes, neither the agency nor Smithfield disclosed the specific reasons behind Canada’s move.

According to USDA regulations, if a facility records three noncompliance issues within six months, it faces a temporary suspension. 

With the Tar Heel plant unable to ship pork to Canada, a key market for U.S. agricultural exports is now restricted.

The USDA said it is working closely with Smithfield to resolve the issues and will submit a corrective action plan to Canadian authorities.

As trade tensions continue, Canada has introduced financial relief measures worth US$4.52 billion (C$6.5 billion) to support businesses and workers affected by U.S. tariffs.

The aid package includes US$3.47 billion (C$5 billion) to help exporters find new markets, manage financial losses, and address issues such as currency fluctuations and cash flow disruptions. 

Another US$770 million (C$1 billion) will provide financial assistance to the agriculture and food sector, with an additional US$385 million (C$500 million) allocated for low-interest loans.

The Canadian government has also adjusted its Employment Insurance Work-Sharing Program, allowing employees to receive job insurance if they agree to reduced work hours while their employers commit to retaining staff.

Trade Dependence and Economic Risks

Canada sends 75% of its exports to the U.S. and relies on its southern neighbor for a third of all imports. 

This heavy dependence on cross-border trade leaves the country exposed to economic disruptions caused by tariff conflicts.

Labour Minister Steven MacKinnon said businesses need immediate reassurance, adding that the government remains committed to protecting Canadian workers and industries.

MacKinnon acknowledged that the economic impact of tariffs would be significant but noted that it would unfold gradually rather than trigger a crisis similar to the COVID-19 pandemic.

Exports to the U.S. contribute about 18% to Canada’s GDP, supporting over 2.4 million jobs. 

Meanwhile, only 1% of the U.S. GDP depends on Canadian exports, though the U.S. relies heavily on Canadian oil.

The Canadian government warned that tariffs could disrupt key industries, including steel, automotive, aerospace, and agriculture, posing long-term economic challenges.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.