OTTAWA, ONTARIO, CANADA — Canadian agriculture groups are concerned what a breakdown in trade relations between Canada and the United States could mean for the industry and food system.

While much of Canadian agriculture remains outside the immediate impact of the latest US tariffs, the Wheat Growers said on Aug. 22 the deterioration of Canada’s most important trading relationship should concern every export-dependent sector.

“The United States is our largest customer, our closest ally and the world’s biggest market sitting directly on our doorstep,” said Gunter Jochum, president of the Wheat Growers. “Canadian farmers depend on trade. We cannot treat access to that market as something we hope works itself out.”

The United States and Canada were in the midst of trade negotiations to avoid tariffs when talks collapsed on Aug. 22. The administration of US President Donald Trump responded with 50% tariffs on $20 billion worth of Canadian goods.

Canadian Prime Minister said the nation would respond with a dollar-for-dollar retaliation against the United States.

The key sectors involved in the conflict include dairy, automobiles, steel and aluminum, lumber and alcohol, but agriculture groups remain concerned.

The Wheat Growers emphasized the deep relationships that exist between Canadian and American agriculture and urged the federal government to use farmers, industry organizations and businesses as part of a broader Team Canada effort.

“American farmers aren’t asking us how they can compete against Canada,” Jochum said. “They’re asking how we continue competing together. Our supply chains, research, processing and markets have been built together over generations. Those relationships are one of Canada’s greatest negotiating assets. Put them to work.”

The Wheat Growers also cautioned against allowing agriculture to become collateral damage as trade tensions spread into additional sectors.

“Farmers are not pawns,” Jochum said. “Our crops are not bargaining chips. Our livelihoods are not negotiating currency. Trade wars too often deliver benefits to the few by distributing the costs across the many. Canadian agriculture should not be asked to carry those consequences.”

Canada and the United States share one of the most important agricultural trading relationships in the world, said the Canadian Federation of Agriculture. Canada is the second largest agricultural trading partner for the United States, with about $70 billion annual trade flow.

As trade measures escalate, farmers, processors, and consumers on both sides of the border face growing uncertainty and risks to supply chains built over decades of cross-border cooperation, the group said.

“For generations, Canadian and American farmers and agribusinesses have worked as partners, supplying food, feed, fertilizer, equipment, and other essential inputs that support a strong North American food system,” said Keith Currie, president of the Canadian Federation of Agriculture. “The breakdown in negotiations and escalation of new tariffs create uncertainty at a time when farmers are already facing significant challenges, including rising input costs, market volatility, and increasingly unpredictable weather.”

The CFA said it is concerned that escalating tariffs will disrupt established supply chains, increase costs, reduce food affordability and undermine the competitiveness of farmers and agriculture businesses on both sides of the border. Producers in both countries depend on efficient cross-border trade to compete in global markets, and any disruption to that relationship risks harming businesses, workers, and consumers throughout North America.

Get better grain and ag industry search results.

Adding us tells Google to prioritize World Grain stories.

Susan Reidy is senior editor with World Grain and editor of the Grain & Milling Annual. She has 21 years of experience covering the grain handling and milling industries, the past 17 years with Sosland Publishing Company. She received a bachelor’s of journalism degree from the University of Missouri-Columbia. Connect with Susan Reidy on LinkedIn or via email.