WINNIPEG – Cereals Canada CEO Dean Dias warns that the United States administration’s proposed decision to impose a 25 percent tariff on Canadian cereals imports, will sever cross border supply chains and damage the long standing relationship between the two countries.
The national value chain organization is raising alarms about the severe economic impact that the tariffs will have on the Canadian agriculture sector and the national economy. The U.S. is Canada’s sixth largest market for non-durum wheat, fourth largest market for durum wheat, second largest market for barley, and largest market for oats.
“The implementation of significant tariffs on Canadian cereal grains and ingredients will drastically impact their availability in North America, leading to increased costs for food processors, lower returns for farmers, and higher grocery bills for American families,” said Dias. “Our team is working with governments and stakeholders on both sides of the border to mitigate the impact of the tariffs.”
Canada and the US have benefitted from reliable two-way trade, with Canada exporting its cereals to the US and importing consumer products that are vital to Canadian farmers, including input supplies and machinery, from the U.S. This disruption stands to not only jeopardize Canada’s export position and farmers’ incomes, but also the relationship between Canada and the U.S.
“Canadian ingredients are an integral part of U.S. food processing,” added Dias. “The U.S. currently depends on Canada for over half of its durum wheat use and over half of its oats use and, unfortunately, these tariffs will ultimately be passed on to American consumers.”
Cereals Canada is in regular communication with the federal government and stakeholders and is actively supporting efforts to ensure that Canada remains a reliable supplier of wheat, barley, and oats to the U.S.
“Canada’s agriculture sector is key to our nation’s prosperity and the food we grow is critical to millions of North Americans,” continued Dias. “Even a short disruption will be damaging to our sector, and the Canadian economy as a whole.”
Cereals Canada is the national, not-for-profit, industry association representing the Canadian cereal grains value chain. Their efforts include working with government and stakeholders to provide timely, expert technical information and deliver best-in-class customer experience. They are dedicated to supporting the Canadian cereals value chain including farmers, exporters, developers, processors, and our customers around the world with a focus on trade, science, and sustainability.
