2025

Canada–US Agriculture in Focus

Get the Facts:

Canada and the United States (U.S.) share one of the most significant agricultural trading relationships in the world. Over half of Canada’s agri-food imports originate in the U.S., while 60% of Canada’s agri-food exports head south. Any disruption—like new tariffs—will directly impact farmers, food businesses, and consumers on both sides of the border.

With protectionist sentiments on the rise, our cross-border supply chains face serious risks. Now more than ever, dialogue, advocacy, and collaboration are essential to ensure our agricultural sectors remain strong and mutually beneficial.

The Canadian Federation of Agriculture (CFA) is working closely with government officials, industry stakeholders, and U.S. counterparts to ensure our farmers’ voices are heard. We aim to maintain open trade channels, emphasize the interdependence of our sectors, and continue to address emerging challenges.

Latest Updates

February 3, 2025 – Justin Trudeau on X

Proposed tariffs will be paused for at least 30 days.

February 2, 2025 – Department of Finance Canada

Government of Canada announces next steps in its response plan to unjustified U.S. tariffs

Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, unveiled the full list of items covered by tariffs on $30 billion in goods imported from the U.S., the first phase of Canada’s response to unjustified U.S. tariffs on Canadian goods.

Process for requesting remission of tariffs that apply on certain goods from the U.S.

Key Objectives

1. Strong Federal Leadership

It is imperative that the Government of Canada shows strong and focused leadership on this issue, supporting farmers advocacy efforts south of the border through consistent, clear, and coordinated communication efforts.

2. United, Strategic Approach

Canada’s message should be clear, tariffs on agricultural products will have a negative effect on businesses and consumers on both sides of the border. 

3. Maintain All Options

A comprehensive approach should be undertaken that includes advocating for targeted exemptions and consideration of tariff and non-tariff responses, compensation for affected industries, and promoting further trade diversification, where possible.

4. Safeguard Domestic Supply Chains

If required, when planning countermeasures, keep Canadian producers in mind, especially those who rely on cross-border inputs. It’s important to support our farmers in maintaining their competitiveness while also nurturing those vital supply relationships that are so crucial for our collective success.

 

Key Messages

Canada and U.S. trade is important for the U.S. and Canadian economies.

  • Every day over US$2.5 billion worth of goods and services crosses the Canada-U.S. border.
  • The U.S. sells more goods to Canada than to any other country. Canada buys more U.S. goods than China, Japan, and Germany combined.
  • Canada is also the largest export market for 36 states, and top three for 46 states; 43 states export over US$1 billion to Canada every year.
  • Any measures that disrupt integrated North American agri-food supply chains will increase of cost of food and other agricultural products on both sides of the border.
 

Imports from Canada feed U.S. industry, making it stronger and more competitive. 

  • Roughly 70% of Canadian goods exports to the United States are used in the production of other goods.
 

The U.S. only has a trade deficit with Canada when you include energy exports.

  • While the US had a $41 billion trade deficit with Canada last year, a third of what Canada sells into the US are energy exports where prices have been high.
  • If we remove oil from the equation, the U.S. consistently runs a steady trade surplus with Canada.
  • In 2023, Canadians spent on average 6 times more per person on U.S. agricultural products compared to what Americans spent on Canadian products.  
  • The recent Canada-U.S. agricultural trade imbalance in Canada’s favour is due to higher import values, not increased volumes. Notably, agricultural trade includes inputs like pesticides and equipment, where the U.S. holds a trade surplus.

     

Latest Events and Resources

State Ag and Rural Leaders (SARL) Ag Chairs Summit

January 3-5, 2025

CFA President Keith Currie and CFA Executive Director Scott Ross attended the SARL Legislative Ag Chairs Summit, alongside reps from KAP and a host of other non-member farm groups, as well as representation from the federal government, Manitoba, Ontario and Alberta governments as well.

American Farm Bureau Federation Convention

January 24-27, 2025

Attend the 106th consecutive American Farm Bureau Convention for insights into the key policies shaping agriculture in 2025. The Canadian Federation of Agriculture will be on site—join us in connecting with industry leaders as we shape the future of our sector together.

Upcoming: NASDA Winter Policy Conference

February 23-26, 2025

The commissioners, secretaries and directors of agriculture from across the United States will gather with federal agencies, congressional leaders and industry stakeholders to address pressing agricultural and food policy issues.

Upcoming: Canadian Federation of Agriculture AGM

February 25-26, 2025

This year’s theme for the AGM is Laying the Foundation: Investing Today for the Future of Canadian Agriculture, examining the foundational elements that need to be put into place for a prosperous future for Canadian agriculture.

We are Canada's Farmers

Stay ahead of the curve with this overview of Canada–US agricultural trade.
Understand the real trade numbers, the impact of potential tariffs, and why our cross-border partnership matters.