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.
Prime 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.
This has always been about Trump wanting to renegotiate the CUSMA and achieve a better outcome for the US. The simple answer is to get off our high horse, get on a plane and get the contract updated and achieve some certainty. Carbon Carney with his reciprocal tariffs will just add fuel to the fire. Canadians need to know that Carney believes China should lead the world and he remains committed to net zero nonsense. Surely not even the folks in Ontario and Quebec are dumb enough to be fooled by the fellow who has been the "shadow" PM for the past 3 or more years.
This benefits all Canadian agriculture, not just Alberta. A lot of the credit for these outcomes should go to our Premier Danielle Smith and her team. Well done. We shall see though whether the CBC, Globe and Mail, Premier Doug Ford, Premier Legault, etc. are willing to give her any credit and willing to say maybe, just maybe, she had the correct approach. Don't hold your breath though.
I would really like to know specifics about how Danielle Smith and RJ SIgurdson influenced Donald Trump on Alberta agriculture. While she was in Mara Lago or Washington what did she say beyond referencing oil and gas? With Kevin O'Leary by her side did agriculture even come up. What about when she was with right wing Podcaster Ben Shapiro - was agriculture mentioned?
C'mon RJ - you know better than to not take credit when it's not due. Unlike your leader.
Show me I'm wrong.
I totally agree. Carbon Tax Carney will rescind the carbon tax for now, then a year from now we will be paying more for fuel, (gas, oil, diesel and LNG as it will be hidden with some economic story about paying to be Green! Once a Liberal, always a Liberal. We will pay for it one way or another.