Chinese tariffs are squeezing nearly one in four Canadian agri-businesses – CFIB

CANADA – A growing number of Canadian agri-businesses are reporting direct impacts from Chinese retaliatory tariffs, with nearly 23% saying they are currently facing consequences from the trade restrictions.

New survey findings from the Canadian Federation of Independent Business (CFIB) show that 36% of agricultural firms in Canada are feeling the effects of China’s duties on products such as canola oil, peas, pork, and seafood.

In light of these developments, 88% of Canadian agri-businesses now believe the country should broaden its trade relationships beyond the United States and China.

CFIB notes that the attention on U.S.-Canada trade tensions has overshadowed the deeper economic harm caused by China’s trade response to Canada.

Juliette Nicolaÿ, a policy analyst at CFIB, said many producers are dealing with unsold goods and shrinking foreign demand, with only a quarter of affected firms having implemented strategies to minimize the fallout.

Despite these challenges, just 10% of the businesses surveyed feel that current government measures are adequate to deal with the situation.

In response, CFIB has submitted a formal request to the federal government, calling for immediate policy changes, including cutting taxes and easing regulations for agricultural firms.

The organization also wants Ottawa to adjust support programs to better reflect the current scale of the crisis and help businesses find new markets abroad.

According to CFIB Vice-President Jasmin Guénette, the stakes are high, as China and the U.S. together account for over half of Canada’s canola exports, with China alone serving as the second largest destination for Canadian fish and seafood.

Guénette warned that without clear guidance and action, more Canadian agri-businesses could lose access to international buyers.

Meanwhile, tensions are escalating between Canada and the U.S. after American President Donald Trump introduced new tariffs, citing national security concerns and trade imbalances.

In 2024, the U.S. shipped US$850 million worth of pork to Canada, while Canada exported US$1.7 billion worth of pork to the U.S.

Live swine exports from Canada to the U.S. were valued at US$560 million, with most animals processed in American facilities before being partially re-exported to Canada.

Amid these developments, the U.S.-based National Pork Producers Council (NPPC) has urged Canada to exempt pork from any future retaliatory tariffs.

In its submission to Canada’s Department of Finance, the NPPC argued that cross-border pork trade supports both industries and should be shielded from political disputes.

The council cautioned that further tariffs could damage a long-established trade system and increase supply chain disruptions on both sides of the border.

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