Source: CCA
The Canadian Cattle Association (CCA) is extremely disappointed by President Donald Trump’s comments suggesting a 25% tariff on all products imported into the United States from Canada, to take effect on February 1. We will be working with the Government of Canada and partners on both sides of the border to prevent the announced tariff coming into force on live cattle and beef.
“The integration of the North American live cattle and beef supply chain is unlike anywhere in the world, contributing to both food security and local and regional food systems,” says Nathan Phinney, CCA President. “The United States and Canada have the largest two-way trade in live cattle and beef in the world with significant numbers of Canadian cattle sent to packing plants in the United States for processing and returned to Canada as beef for retail sale. Also, American-born cattle are fed in Canadian feedlots before returning to the United States for processing. Tariffs would greatly increase the cost of processing cattle and ultimately the cost of beef on both sides of the border.”
Phinney emphasizes that the Canadian beef industry is a strong advocate of free and open trade. “We expect our trade agreements to be respected and honoured. International trade is advanced through negotiation and compromise, as was done with the revision of NAFTA by President Trump himself.”
Every day, $3.6 billion in goods crosses the Canada–U.S. border, resulting in a $1.3 trillion annual trade relationship. Notably, Canadians purchase $722/person of U.S. agricultural products each year while Americans purchase just $118/person of Canadian agricultural products annually.
The American and Canadian beef and cattle industries are partners in that cross-border trade, with small and medium sized processors and local and regional food systems on both sides of the border relying on the free flow of cattle and beef across the border.
Phinney noted that, “Tariffs will create significant impacts on both the Canadian and American beef and cattle industries, implicating prices, production, trade flows, and margins as well as the utilization of feedlots, packing plants, trucking, and on our other upstream and downstream partners in the supply chain. We can expect an immediate increase in volatility.”
“The impact of the tariff will be felt by beef producers across North America. The tariff will jeopardize American jobs throughout the value chain and will increase costs for citizens of both Canada and the United States at the grocery store and in restaurants,” Phinney says.
