CALGARY, ALTA. (RFD-TV) — Canada may be shifting its trade strategy toward limiting the impact of U.S. tariffs rather than pursuing a return to broad tariff-free trade, as both countries prepare for the 2027 review of the United States-Mexico-Canada Agreement (USMCA).
Shaun Haney, host of RealAg Radio, joined Market Day Report to discuss the implications for agricultural supply chains, how farm groups can weigh in on the USMCA review and the potential political fallout ahead of the U.S. midterm elections.
Canada Focuses on Limiting Tariff Impacts
In his interview with RFD-TV, Haney said comments from Canada’s chief trade negotiator, Janice Charette, at the Toronto Global Forum suggest Canada is focused on limiting tariff exposure while protecting the benefits that remain under the USMCA.
He said the Trump administration has made clear that tariffs are likely to remain part of its trade policy, including in agreements with other countries.
“For us processors and input suppliers, they’re going to see buyers actively trying to reroute purchases toward non-tariff avenues or domestic alternatives,” Haney said.
He added that shifting purchasing decisions can create additional costs for businesses, including the time and resources needed to manage alternative suppliers.
Haney said tariffs are becoming a reality across more trade relationships, making it harder to expect a return to the tariff-free environment Canada and the United States previously enjoyed.
Farm Groups Urged to Make Their Case
The U.S. Trade Representative is accepting public comments ahead of the 2027 USMCA review, with a deadline of January 12, 2027. The process gives agricultural organizations an opportunity to document how trade policies affect their members and cross-border commerce.
Haney encouraged farm groups to submit concrete data showing how trade barriers and retaliatory duties affect operating margins in rural communities.
He also emphasized the importance of explaining how closely connected North American agricultural supply chains are, including the movement of fertilizer, beef, pork, and other products across the border.
“Look at the fertilizer market, potash coming out of Canada, looking at the beef and the pork market and the amount of cross-border trade that happens,” Haney said.
He said the discussion should account for more than finished goods, noting that agricultural products and components often move back and forth across the border during production and processing.
Haney said those integrated supply chains are an important part of the North American agricultural economy and should be part of the conversation as trade rules are reviewed.
Trade Disputes Add to Midterm Uncertainty
Haney also discussed how tensions between the two countries could become part of the U.S. midterm election debate.
U.S. officials have raised concerns about potential Canadian influence on American politics, while Canadian Prime Minister Mark Carney has rejected allegations that Canada intends to interfere in the November 3 elections. Canadian diplomats have also been directed to avoid meetings and events with U.S. midterm candidates during the election period.
Haney said the dispute has prompted speculation in Canada about whether trade tensions could become a political issue in rural U.S. districts, particularly where Canadian officials have highlighted the effects of American tariffs.
He noted that some see Canada’s outreach as routine lobbying in response to U.S. trade policy, while the Trump administration has criticized those efforts.
Haney said the election results could influence the direction of the already strained trade relationship, though how the dispute develops remains uncertain.
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