Global markets are reeling after U.S. President Donald Trump announced tariffs on dozens of countries yesterday, but it looks like Canada’s agricultural industry came through unscathed.
A fact sheet, published by the White House on April 2, says Canadian goods that qualify under the U.S.-Mexico-Canada (USMCA) free trade agreement will avoid further tariffs.
That means that Canadian agricultural products shipped to the U.S. will remain tariff-free, said Alberta's Agriculture Minister and Highwood MLA RJ Sigurdson in a statement.
"This is the result of months of hard work and advocacy, ensuring that our farmers and ranchers remain competitive on the global stage," Sigurdson said.
The United States is Canada’s largest agricultural trading partner, and almost all agricultural products traded between the two countries fall under the free trade agreement, according to the U.S. Department of Agriculture.
Alberta Premier Danielle Smith called yesterday’s tariff announcement a win for Canada.
Smith said her diplomatic approach in responding to tariff threats paid off.
“This is precisely what I have been advocating for from the U.S. Administration for months,” she said in a statement.
“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point,” she said.
U.S. tariffs on Canadian steel, aluminum and products not covered under the free trade agreement remain in place.
Prim Minister Mark Carney said on Thursday that Canada would fight back with countermeasures and would match a 25 per cent tariff on automobiles that began on April 3.
Despite seemingly good news for agriculture, and many other Canadian products, stock markets on both sides of the border fell sharply after Wednesday's tariff announcements.
The S&P/TSX composite index, the S&P 500 index and Dow Jones index were all down by more than three per cent by midday Thursday.
Oil prices also dropped. with West Texas Intermediate down by more than $5 USD per barrel, or seven per cent, to below $67.
