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By Alice McFarlane

Canola groups relieved

Canola industry responds to U.S. tariff announcement

Apr 4, 2025 | 12:13 PM

President Donald Trump indicated that Canada-United States-Mexico Agreement (CUSMA) compliant goods, which includes Canadian-produced canola and canola products, will not presently be subject to tariffs.

Canola Council of Canada (CCC) President & CEO Chris Davison said this week’s announcement from the President is welcome news to farmers and the entire Canadian canola industry.

“We have been very clear that the imposition of any tariffs on Canadian canola and canola products would have widespread and negative impact,” Davison said. “The fact that we can move forward with tariff-free trade with the U.S. is a positive development and underscores the importance of rules-based trade.”

The U.S. is Canada’s number one market for canola exports and is highly integrated with the Canadian canola industry. Total export value 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.

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

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Rick White, President & CEO at Canadian Canola Growers Association (CCGA), said concerns over U.S. tariffs add considerable uncertainty for farmers preparing to plant the 2025 canola crop.

“While the threat of immediate tariffs has been reduced, the risk and uncertainty of tariffs has not been eliminated. Our advocacy work to strengthen Canada-U.S. trade relations will continue,” White said.

A recent analysis completed by the CCC on the impact Canadian-grown canola has on the U.S. economy underscores 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. The canola industry benefits farmers, consumers, and businesses on both sides of the border and the industry’s integrated supply chains support jobs and economies in both countries.

CCGA and the CCC said they are committed to focusing on strengthening the Canada-U.S. trade relationship and boosting the mutual benefits the two countries receive from smooth and predictable canola trade.

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alice.mcfarlane@pattisonmedia.com

On X: @farmnewsNOW