By: Angie Sullivan

President Trump threatened new tariffs on Canadian agricultural products, which will take effect on April 2, and the Canadian beef industry is preparing for the impact.

John Webb, one of 19,000 beef farmers in Ontario, is worried. He has a nearly one-hundred-head beef herd and farms several properties in Georgina for hay.

“It’s hard to find anything positive with the potential tariff on agriculture. We export a large percentage of live and processed meat to the states, so I think that would shrink. Price drops would probably happen for the stockers I sell,” Webb said.

Webb is concerned about more than the price he will receive for his livestock. “Many of the items I buy will be affected by reciprocal Canadian taxes. My cost of business will go up.”

John Webb with herd

The Alberta Beef Producers mirror Webb’s concern and recently reported, “The Canadian beef industry is expected to face significant challenges due to the 25 per cent tariffs on beef exports to the U.S. As the U.S. is a major market for Canadian beef, these tariffs are likely to reduce demand and lower prices for Canadian beef producers, potentially leading to financial strain. The Canadian government and industry groups are exploring alternative markets and strategies to mitigate the impact.”

“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, Canadian Cattle Association President.

“The United States and Canada have the largest two-way trade in live cattle and beef in the world. 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.”

Dennis Laycraft, executive vice president of the Canadian Cattle Association, said he’d like to see Canada step up its international marketing efforts for Canadian beef.

“World beef demand is growing faster than world beef production. We’re pretty excited about the future, which is why it’s so frustrating to go through an event like this.”

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