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By Alice McFarlane

U.S. tariffs impact

Tariffs to have widespread, devastating impacts on the Canadian canola industry

Mar 5, 2025 | 12:37 PM

The U.S. decision to move forward on 25 per cent tariffs applied to imports of a broad range of Canadian goods will include canola seed, oil, and meal.

Canola is the single largest contributor to farm crop cash receipts – grown by nearly 40,000 farmers across the country.

In a joint statement, the Canola Council of Canada (CCC) and the Canadian Canola Growers Association (CCGA) said the canola industry delivers a win-win for both Canada and the U.S. and everything must be done to restore smooth, predictable, tariff-free canola trade between the two countries.

CCC President & CEO Chris Davison said they had welcomed the decision to pause implementation of tariffs, in support of predictable, tariff-free trade.

“The U.S. decision to now go forward with 25 per cent tariffs on Canadian-grown canola and canola products will be felt across the canola value chain, with devastating impacts on farmers, input providers, canola crushing activities, and exports of canola seed, oil, and meal,” Davison said.

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The U.S. is Canada’s number one market for canola exports and a market that is highly integrated with the Canadian canola industry. Total export value in 2023 was $8.6 billion and in 2024 reached $7.7 billion, with record high volumes including 3.3 million metric tonnes (MMT) of canola oil and 3.8 MMT of canola meal.

CCGA President & CEO Rick White said the uncertainty created by the situation continues to impact farmers as they move closer to planting the 2025 crop.

“The damaging blow caused by tariffs will be felt by every canola farmer, starting with the price they receive at delivery and will extend to the full range of their operations, ultimately reducing farm profitability,” White said.

A recent analysis completed by the CCC on the impact Canadian-grown canola has on the U.S. economy also draws attention to the economic benefits the U.S. derives from the Canadian canola industry, which averages $11.2 billion (USD) per year and includes $1.2 billion (USD) in wages.

The economic benefits of the trading relationship occur at almost every stage of the canola industry including U.S.-based processing and refining, transportation, bottling and packing, food end uses, livestock, and more.

CCGA and the CCC are focused on strengthening the Canada-U.S. trade relationship and talking about the mutual benefit both countries receive from canola trade.

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alice.mcfarlane@pattisonmedia.com

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