U.S. Tariffs on Canadian Canola Industry Will Have Widespread, Devastating Impacts
February 1, 2025 - Today, U.S. President Donald Trump announced that tariffs of 25 per cent will be applied to imports of a broad range of Canadian goods, including canola seed, oil, and meal, effective February 4, 2025.
“The application of these tariffs on Canadian-grown canola and canola products will be felt across the canola value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “Tariffs will have devastating impacts on farmers, input providers, canola crushing activities and exports of canola seed, oil and meal.”
The U.S. is Canada’s number one market for canola exports and also a market that is highly integrated with the Canadian canola industry. Total export value in 2023 was $8.6 billion, including almost 3 million metric tonnes (MMT) of canola oil valued at $6.3 billion and more than 3.5 MMT of canola meal valued at $2.0 billion.
Canola is the single largest contributor to farm crop cash receipts – grown by nearly 40,000 farmers across the country.
“The damaging blow of these duties will be felt by every canola farmer, starting with the price they receive at delivery and will extend to the full range of their operations, ultimately reducing farm profitability,” says Rick White, Canadian Canola Growers Association (CCGA) President & CEO. “The destructive consequences for our farms, as well as our rural and national economies, are evident.”
A recent analysis completed by the CCC on the impact Canadian-grown canola has on the U.S. economy also draws attention to the economic benefits the U.S. derives from the Canadian canola industry, which averages $11.2 billion (USD) per year and includes $1.2 billion (USD) in wages.
The economic benefits of the trading relationship occur at almost every stage of the canola industry including U.S.-based processing and refining, transportation, bottling and packing, food end uses, livestock and more.
CCGA and the CCC are focused on strengthening the Canada-U.S. trade relationship and amplifying the mutual benefit our nations receive from canola trade through U.S. advocacy activities and engagement with the Government of Canada to advance the Canadian canola industry’s interests.
“The canola industry delivers a true win-win for both Canada and the U.S., and we must do everything we can to restore smooth, predictable, tariff-free canola trade between our two countries,” say Davison and White.
The Canadian Canola Growers Association represents canola farmers on national and international issues, policies, and programs that impact farm profitability and has been an administrator of the Government of Canada’s Advance Payments Program since 1984.
The Canola Council of Canada is a full value chain organization representing canola growers, processors, life science companies and exporters.
Media Contacts:
Tenesha Lawson
Manager, Stakeholder Communications
Canadian Canola Growers Association
communications@ccga.ca
Heidi Dancho
Director, Communications
Canola Council of Canada
danchoh@canolacouncil.org