Tariffs
Current Situation
This is an evolving situation and the circumstances may change by the time you read this.
The United States government has imposed 25% tariffs on all Canadian goods entering the U.S., except for oil, which faces a 10% tariff. This decision, enacted by President Trump, follows months of speculation after his election victory in November 2024.
In response, the Government of Canada has implemented retaliatory tariffs on $30 billion worth of U.S. goods, effective immediately. These tariffs are set to increase to include a total of $155 billion after March 25, following a 21-day consultation period.
Adding further uncertainty, the U.S. has introduced a “reciprocal tariff” policy, meaning that because Canada has retaliated, U.S. tariffs on Canadian goods could rise to 50% by April 2.
This escalating trade dispute poses significant challenges for farmers on both sides of the border. The Nova Scotia Federation of Agriculture is deeply concerned by the U.S. government’s decision and urges them to uphold the CUSMA agreement signed in 2018.
Updates
Update from Government of Canada – March 11
To support Canadian businesses and ensure they have the liquidity they need through this turbulent time, the Government of Canada announced the following measures:
- Launching the Trade Impact Program through Export Development Canada. The program will deploy $5 billion over two years, starting this year, to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion.
- Making $500 million in favourably priced loans available through the Business Development Bank of Canada to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains. Businesses will also benefit from advisory services in areas such as financial management and market diversification.
- Providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on.
- The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, announced that the Government of Canada will set the interest-free limit of the Advance Payments Program at $250,000 for the 2025 program year. A link to the announcement can be found here.
- Information on U.S tariffs
- Based on our current understanding, as of March 7 at 12:01 AM, Canadian exports to the U.S. that can enter duty-free under CUSMA (i.e., meet CUSMA’s rules of origin under Chapter 4 and for which duty-free concessions under the U.S. Tariff Schedule have been provided) are exempt from the International Emergency Economic Powers Act (IEEPA) tariffs of 25% or 10% (the “CUSMA exemption”).
- The Executive Order also lowers IEEPA tariffs on non-originating Canadian potash from 25% to 10%.
- The Executive order does not specify an end date for the CUSMA exemption. Separately, Section 232 tariffs on Canadian aluminum and steel are scheduled to enter into effect on March 12, 2025, and the U.S. administration is considering additional tariffs, including reciprocal tariffs, starting April 2, 2025.
- In terms of Canada’s response, tariffs on $30 billion worth of U.S. goods remain in effect, and public consultations on a second round of potential tariffs are ongoing. The deadline for stakeholder input has been extended to April 2, 2025. Notice of Intent to Impose Countermeasures in Response to United States Tariffs on Canadian Goods – Canada.ca
- To ensure that Finance Canada receives all comments on retaliatory tariffs, sector representatives are encouraged to provide input directly to Finance at this site.
- For specific inquiries, Canadian traders should consult a trade professional, such as a licensed customs broker, or contact Canada Border Services Agency for Canadian imports and the U.S. Customs and Border Protection for U.S. imports.
Message from the President: March 7, 2025
Hello everyone,
I had hoped we wouldn’t have to be writing this email but as we all know, the tariffs being imposed by the United States government remain an active threat.
This escalating trade conflict will severely impact farmers on both sides of the border, not just ours. The NSFA is extremely disappointed that the U.S. government has taken this path, and we urge them to honour the CUSMA agreement signed in 2018.
The Federation is actively working with both provincial and federal governments to support the industry through this disruption to ensure we find solutions to support Nova Scotia farmers and our rural communities.
To effectively represent your voice, we are asking for 5 minutes of your time to complete this survey on tariffs, interprovincial trade and market development. All of your information is incredibly valuable to our work on this issue.
We have also put together a webpage that will house information related to tariffs, important links, and updates as the situation progresses. As always, don’t hesitate to reach out to our team.
Take care,
Alicia King
Effective March 4th – Immediate Retaliatory Tariffs:
Agricultural Products
- Poultry
- Meat and edible meat offal
- Milk and dairy products (cream, yogurt, buttermilk, curdled milk, whey, butter, cheese, curd)
- Eggs and egg yolks
- Natural honey
- Vegetables (tomatoes, leguminous vegetables, nuts)
- Fruits (citrus, melons, apricots, cherries, peaches, nectarines, plums)
Spices & Dry Goods
-
- Coffee and tea
- Spices (pepper, vanilla, cinnamon, cloves, nutmeg, mace, cardamom, anise, badian, fennel, coriander, cumin, caraway seeds, ginger, saffron, turmeric, thyme, bay leaves)
- Grains (wheat, meslin, rye, barley, oats, rice)
- Vegetable saps and extracts
Oils & Fats
- Fish oils, ground nut oils, sunflower-seed, safflower, cotton-seed, canola, palm, mustard oils
- Margarine
Processed & Preserved Foods
- Sausages and other preserved meats
- Casein, albumins, peptones
- Crustaceans, mollusks, and aquatic invertebrates
- Sugar (cane, beet, confectionary)
- Molasses, chocolate, malt extract
- Pasta
- Preserved vegetables, fruit, nuts, juices
- Sauces, soups, broths
- Ice cream
Industrial & Equipment Tariffs
Agriculture Equipment
- Tractor tires
- Mowers and cutter bars for tractors
- Tools for motor repairs
- Drones
Work Gear & Safety
- Proper footwear and work clothes
- Safety headgear
Infrastructure & Building Materials
- Ventilation, heating, and cooling systems
- Lighting
- Lumber and wood
- Steel
These tariffs may come into effect at a later date:
Live Animals
Horses
Cattle
Buffalo
Swine
Sheep
Goats
Poultry
Bees
Meat & Dairy
- Beef, pork, lamb, poultry
- Milk, cream, milk powders, yogurt, whey, butter, cheese, curds
- Eggs
Plants & Agricultural Products
- Flowers (roses, azaleas, carnations, orchids, lilies, chrysanthemums, etc.)
- Mushroom spawn
- Christmas trees, grasses, palm leaves, mosses, lichens
Fruits & Vegetables
- Potatoes (including seed)
- Onions, shallots, garlic, leeks
- Cabbages, cauliflower, kale, broccoli, lettuce
- Carrots, turnips, radishes, beets, cucumbers, gherkins
- Leguminous vegetables, asparagus, mushrooms, truffles
- Nuts, bananas, figs, avocados, pineapples, beans, chickpeas, lentils
- Sweet potatoes, yams, coconuts
- Apples, pears, peaches, cherries, apricots, strawberries, raspberries
- Red currants, gooseberries, kiwi
Grains & Seeds
- Wheat, meslin, rye, barley, oats, corn, sorghum, buckwheat, millet, canary seeds
- Cereal flours, soybeans, nut seeds, sugar beet seeds
- Seeds for forage plants
- Vegetable saps and extracts
Oils, Fats, & Sweeteners
- Animal fats, olive oil, sunflower seeds, corn oil, sesame seed oils
- Sugar, citrus fruits, juice
- Flax, hemp
Animal Feed & Industrial Goods
Animal Feed (of any kind)
Natural Resources
- Limestone, cement, oil, gas, coal
Fertilizers
- Nitrogen, phosphorus, and potassium-based fertilizers
Building Materials
- Pipes, hoses, wooden frames
- Ceramic building blocks, roofing materials, ceramic pipes
- Doors, windows, frames, scaffolding
- Radiators, iron/steel products for buildings
- Pipes/tubes for oil and gas
- Air conditioning, water storage, heating, lighting
- Cement, insulation, tanks, casks, drums
Plastics & Packaging
- Self-adhesive plastic materials
- Plastic signs, letters, numerals
- Identification tags for livestock
- Boxes, cases, crates, sacks, bags
Office Supplies & Paper Products
- Office supplies
- Paper
Other Materials & Components
- Conveyor belts, transmission belts (used in harvesting)
- Rubber tubes, brake linings, carbon fibers, safety glass
Tools & Machinery
Hand Tools (spades, shovels, mattocks, picks, hoes, rakes, scythes, sickles, knives, saws)
Agriculture & Construction Equipment
- Sprayers, bulldozers, graders, front-end loaders
Agricultural Machinery
- Ploughs, harrows, seeders, cultivators, fertilizer spreaders, manure spreaders, balers, harvesters
- Machines for egg sorting, milking, dairy, poultry-keeping
- Machinery for animal feed preparation
Tractors
- Track-laying tractors
- Wheeled tractors powered by engines for use in agricultural, forestry, or industrial purposes
Technology & Electronics
Smartphones, tablets, computers