Canola, tires, and many food products subject to Canada’s first wave of retaliatory tariffs

Many agricultural and food products will be affected by the Canadian government’s first wave of retaliatory tariffs in response to President Trump’s 25 per cent tariffs on Canadian exports to the U.S.

As of February 4, Canada is imposing 25 per cent tariffs on $30 billion worth of American imports. Prime Minister Justin Trudeau has pledged tariffs on another $125 billion worth of imports from the U.S. after a 21-day comment period, giving Canadian businesses time to find alternative suppliers.

On Sunday, Finance Canada published the list of specific items that are part of the initial $30 billion response.

It includes many food products and consumer goods, including tools, clothing, furniture, and appliances.

Canola, barley, oats, and certain wheat products are on the list. That means a Canadian crush plant, for example, that purchases canola grown in the northern U.S. will have to decide whether to pay the tariff or cut off purchases from American farmers.

The list of what’s not included in Canada’s first round of retaliatory tariffs notably includes American corn, cattle, soybeans/meal, ethanol, and other biofuels.

Finance Canada has already indicated the second tariff package will include beef and pork products, and fruits and vegetables, as well as steel, aluminum, and vehicles.

Tags: Biofuels, corn, oats, barley, tariffs, canola, soybeans, Canada, wheat, cattle, imports, U.S., ethanol, exports