Today, U.S. President Donald Trump confirmed that previously announced tariffs of 25 per cent will be applied to imports of a broad range of Canadian goods, including canola seed, oil and meal, effective March 4, 2025.
“A month ago, we welcomed the U.S. decision to pause implementation of tariffs, in support of predictable, tariff-free trade,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “The U.S. decision to go forward with 25 per cent tariffs on Canadian-grown canola and canola products will be felt across the canola value chain, with 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 and in 2024 reached $7.7 billion, with record high volumes including 3.3 million metric tonnes (MMT) of canola oil and 3.8 MMT of canola meal.
Canola is the single largest contributor to farm crop cash receipts – grown by nearly 40,000 farmers across the country.
“The uncertainty created by this situation continues to impact farmers as they inch closer to planting the 2025 crop,” says Rick White, Canadian Canola Growers Association (CCGA) President & CEO. “The damaging blow caused by tariffs 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.”
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.
Source : Canola Council