While fresh produce has not yet been directly caught up in tariffs, the situation is stressful for suppliers on both sides of the border
Representatives of the US and Canadian fresh produce industries have warned that the outbreak of a new tariff war between the two nations will lead to greater uncertainty for growers, importers and exporters.
US president Donald Trump this weekend announced 50 per cent tariffs on $20 billion of Canadian goods, with agricultural goods such as wine, dairy and honey among the items listed. Fresh fruit and vegetables are not currently included.
Canadian prime minister Mark Carney hit back by promising to retaliate “dollar for dollar” with tariffs on US imports from 8 September.
The situation has caused further disquiet in the North American fresh produce industry, where geopolitical tensions have already led several Canadian exporters to seek out alternatives to their long-established markets south of the border.
Ron Lemaire, president of Canada’s fresh produce trade organisation CPMA, said: “The North American fresh produce industry is deeply interconnected and provides economic, health and food security benefits for all three countries.
”While fresh produce items are not included among the most recent set of US tariffs, the inherent uncertainty of tariff policies hinders long-term planning and investment across the sector.
“CPMA is monitoring this situation closely and continues to advocate for a robust North American free-trade agreement that safeguards the significant gains made for our industry under NAFTA and CUSMA and maintains tariff-free trade for all fresh produce commodities.”
The Washington, DC-based International Fresh Produce Association (IFPA) said the implementation of new tariffs on Canadian goods “adds to the uncertainty facing the agriculture industry operating across the highly integrated North American market”.
Last year, Canada accounted for 48 per cent of US fresh produce exports, representing over $3.5bn in produce sales. In total, the US and Canada share nearly $6.5bn in annual fresh produce trade.
Canada is also a major supplier of cut florals and floral inputs, as well as an important source of critical inputs that US fruit and vegetable growers rely on, IFPA pointed out.
“A stable, predictable trade relationship with Canada is essential to the growers, businesses, and consumers who depend on a strong North American fresh produce supply chain,” it said in a statement.
“IFPA encourages both governments to continue working toward a negotiated resolution that reduces trade barriers and provides the certainty growers need to plan, invest, and keep fresh produce available and affordable for consumers on both sides of the border.”
