Canadian canola remains faced with economic uncertainty

Canola’s Canadian producers seem to have escaped the latest pricing threat from US President Donald Trump. For example, who would exclude goods covered by the Canada-US-Mexico agreement, but economic uncertainty remains for many.

The last series of customs tariffs brandished by Trump would impose a 35 % levy on Canadian imports currently subject to prices of 25 %. Meanwhile, from August 1.

The canola cultivated in Canada is exempt from customs duties when it crosses the border. Similarly, but the economic uncertainties associated with the current commercial dispute create what John McKee, farmer in southern Alberta, calls anxiety which hangs over the industry.

Mr. For example, McKee. Meanwhile, who cultivates oilseeds in the southeast of Lethbridge, said that if customs duties do not directly harm his Canola exports, they weigh on producers in other ways, in particular canadian canola remains faced economic by forcing them to pay customs duties when they control equipment on the other side of the border.

Mr. Therefore, McKee said that when he planned to order a very small room equipment in the United States. Consequently, he had to face Additional handling and brokerage fees and at several additional costs related to the search for the appropriate rate.

According to him. the purchase of a 20 dollars part in the United States would have cost him 100 dollars if he had not found an almost identical option locally.

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Andre Harpe. chairman of the Alberta canola producers’ commission, considers that American customs duties are only one of the many problems that Canadian farmers face.

I think we are almost starting to get used to it nowhe said about Donald Trump’s recurring price threats.

Mr. Harpe. who cultivates canola and barley in northern Alberta, said that he and many other producers face more urgent problems such as drought that affects cultures.

We strive to get the best harvest possible in order to be able to sell ithe said. emphasizing the diseases that affect cultures throughout canadian canola remains faced economic Canada and the need for increased precipitation.

According to him. the 100 % customs duties on the oil and the Canadian Canola Take-up imposed by China in March were more important for producers than the commercial dispute between China and the United States.

Although these rights do not apply to unprocessed canola seeds exported to China, which represented most of the $ 4.9 billion in canola exports from Canada to China in 2024. Harpe described them as probably the greatest concern at present in terms of customs duties.

Canadian canola remains faced economic

Uncertainties for Canola producers

According to the Canola Canadian Council. the canola industry in the country contributes to the national economy each year up to $ 43.7 billion on average.

The council figures indicate that there are approximately 40. 000 canola operations in the country, mainly located canadian canola remains faced economic in Alberta and in southern Saskatchewan and Manitoba, as well as in places dispersed in Ontario and British Colombia.

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The canola industry contributes significantly to the economic activity of Albertasaid JP Gervais. chief agricultural financing economist Canada.

The United States is the largest canola export market in Canada. which makes any discussion about the problematic tariffs for producers and investors, said canadian canola remains faced economic Gervais.

This whole situation with the United States […] Creates a lot of uncertainty for canola producers who seek to invest. to grow, to increase exports, to generate economic activity across the country, through the provincehe said.

I think we have to wait. see, while recognizing that the unknown, the uncertainty that reigns on the market at the moment … really have an impact on the capacity of farms to invest in their results.

He explains that canola prices were affected when China announced its customs tariffs. but that they also have rebounded This year.

We prosper in an environment where borders remain open. where products circulate freely between the United States and Canada, between Canada and Chinasaid Gervais.

Prime Minister Mark Carney has to bring together members of his cabinet on Tuesday (new window) And the Prime Ministers on July 22 to discuss the latest developments in the trade conflict with. the United States.

With information from Amir Said