Cattle, corn, ethanol, and fertilizer on Canada’s proposed $125 billion counter-tariff list

The Canadian government has published a proposed list of U.S. products it intends to hit with $125 billion worth of tariffs after a 21 day comment period.

Retaliatory levies on an initial list that was previously announced, worth $30 billion, took effect immediately on March 4 at 12:01 when the Trump administration imposed its 25 per cent tariffs on Canadian exports.

While the initial $30 billion list includes some agricultural commodities, such as canola oil, most cereal crops, and many food products, the $125 billion list that’s proposed to take effect in late March includes many products where 25 per cent tariffs could have major consequences on agricultural supply chains and farm expenses.

At first glance, here are some that stand out (please check Finance Canada’s list for specific category details):

• Fertilizers, including multiple forms of nitrogen and phosphate
• Ethanol
• Biodiesel (not renewable diesel)
• Beef
• Pork
• Cattle
• Goats and sheep
• Pigs
• Corn (seed and other)
• Soybeans (seed and other) and soymeal
• Canola meal
• Forage seed
• Many categories of ag machinery, including tractors, combines, planters/seeders, cultivators, harrows, manure spreaders, fertilizer spreaders, haying equipment, potato harvesters, grain carts, trailers, and others.

The initial $30 billion list includes 1,256 categories of products, while the proposed $125 billion list that’s under review includes 4,416 entries.

The Canadian government is seeking feedback on the impact of these proposed tariffs until March 25, after which they could be implemented.

“These tariff countermeasures are intended to incentivize the United States to remove its unjustified tariffs against Canada,” says Finance Canada. “The countermeasures will not apply to U.S. goods that are in transit to Canada on the day on which these countermeasures come into force.”

Responding on Tuesday, President Trump said the U.S. will raise its tariffs on imports from Canada if the Canadian government retaliates.

Tags: Canada, USA