25 April 2025

2 minute read

By: Global Ag Media

North America

Asia

The vast majority of Canadian agri-businesses (88%) say Canada should strengthen trade ties with other countries besides China and the US due to rising trade tensions, according to new data from the Canadian Federation of Independent Business (CFIB).

China's retaliatory tariffs on Canadian agricultural and seafood products are affecting about a third (36%) of Canadian agricultural businesses, with nearly one in four (23%) taking a direct hit.

"While the focus has been on the US tariff battle, Canadian agri-businesses have been even more deeply harmed by China's tariffs on canola oil, canola meal and peas, as well as certain pork, fish and seafood products. These producers need greater attention and support," said Juliette Nicolaÿ, bilingual policy analyst at CFIB. "While about one in four agri-businesses have taken steps to mitigate tariff impacts, only 10% of agri-businesses say that governments have done enough to support affected firms."

CFIB is calling on government to take urgent action to push back against this unfair treatment and has sent a letter to the federal government, urging it to reduce the tax and regulatory burden on agri-business, ensure support programs properly address the scope of the current challenges and assist agri-businesses in navigating new markets.

"Both the US and China represent significant markets for agri-businesses. Combined, these two countries represent more than half of Canada's canola exports. China is Canada's second largest fish and seafood export market. As a result of the trade disruptions, our agri-businesses risk having unsold inventory and some are already losing foreign buyers. They need clarity on how to move forward and plan their operations," said Jasmin Guénette, CFIB's Vice-President of National Affairs. "The government needs to turn its focus to supporting the agriculture industry and adopting policies to improve the business climate for Canada's SMEs."