CALGARY, ALBERTA (RFD NEWS) — Coverage continues on trade with Canada as new Canadian tariffs on U.S. goods went into effect at midnight.
The tariffs cover around $27.6 billion worth of American goods, including dairy, agricultural equipment, paper, household appliances and consumer electronics.
Shaun Haney, host of RealAg Radio, joined us on Tuesday’s Market Day Report with an update from across the border.
In his interview with RFD News, Haney says the tariffs cover approximately $27.6 billion in U.S. goods and are intended to retaliate against U.S. tariffs. However, he notes, Canadian consumers will ultimately feel some of the impact of the retaliatory tariffs.
“Hopefully we can have some cooler heads prevail here in the near term,” Haney said.
Tensions Continue Between the Two Countries
Haney says Canadian Prime Minister Mark Carney appeared to take a measured and practical approach in a video address, but he did not get the sense that negotiations or a short-term solution were imminent.
He says there had been expectations that the two countries might have a window for negotiations before the September 8 tariffs, but no official talks took place.
Haney says the continued back-and-forth between the two countries is particularly notable given that the U.S. and Canada are major trading partners.
Agriculture is also being affected, including agricultural machinery and dairy.
Canada is the number two market for U.S. dairy products, according to Haney, so the tariffs will affect the industry.
Potential Canadian Goods Ban
The White House is considering banning some Canadian goods in response to the tariffs.
Haney pointed to Bombardier as an example of the complexities surrounding the dispute.
President Trump said he would ban Bombardier from selling products in the United States. Haney noted that Bombardier employs more than 3,000 people in the U.S., including employees in Wichita, Kansas.
He also noted that the company has invested in U.S. manufacturing and that planes produced in Canada are powered by U.S.-made engines from states including Indiana and Arizona.
Haney says the longer the dispute continues, the greater the concern over investment in both countries.
Farmers Looking for Certainty
Haney says trade remains a concern for U.S. farmers, particularly as producers face profitability challenges.
While walking the Farm Progress Show grounds in Boone, Iowa, last week, Haney spoke with farmers about trade and exports.
“For the most part, talking to farmers walking around the grounds, they just want to have a calmer environment,” Haney said.
The U.S. is focused on increasing agricultural exports, and Haney noted that Agriculture Secretary Brooke Rollins has discussed 20 new trade deals in 16 months.
However, he says producers have not yet seen exports fully take off from those agreements.
For most of the farmers he spoke with at Farm Progress Show, Canada was not the primary trade concern. However, Haney said sentiment among dairy producers felt differently, with specific issues with Canada that need to be resolved.
