The latest tariffs announced by the United States earlier this week is another reminder of how important stable and predictable trade is to Ontario agriculture. The uncertainty alone creates real challenges for farm businesses and the entire agri-food value chain.
The President of the United States (U.S.) signed three Proclamations pursuant to Section 338 of the Tariff Act of 1930 to impose 50% tariffs on approximately C$28 billion in Canadian exports of certain goods to the U.S. The new tariffs are set to apply to goods on August 19, 2026.
“Ontario relies heavily on the United States as our largest export market,” said Drew Spoelstra, OFA President. “Added tariffs and continued trade disruptions only creates more uncertainty for farmers who are constantly making investment decisions, negotiating export contracts and managing long-term business planning as well as risks on the farm.”
Ontario farmers depend on reliable access to U.S. markets, not only to export the high-quality food we produce, but also to maintain the integrated supply chains that support our farms, processors and rural communities. Should the 50 percent duties take effect on August 19, some Ontario farmers and agri-food businesses will be significantly impacted, especially those businesses reliant on exports to the U.S. of syrups, sugars, cut flowers, natural honey, alcoholic beverages, and/or non-alcoholic beer.
At the same time, ongoing tariffs on steel and aluminum continue to increase the cost of equipment, buildings and other essential farm inputs, adding further pressure to an industry already managing rising production costs, energy and fertilizer prices, and market volatility.
“Ontario agriculture has always demonstrated resilience in the face of uncertainty, but we understand the need for farmers to be able to invest with confidence, grow their businesses and continue producing the safe, high-quality food that we all depend on,” added Spoelstra.
The OFA continues to actively monitor developments and remains engaged with federal and provincial governments, industry partners and national agricultural organizations.
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