President Donald Trump’s 25% tariff on Canadian grain and grain products set to take effect tomorrow is expected to drive up the cost of everyday food staples for American consumers, according to Grain Growers of Canada (GGC).
The tariff, imposed by the U.S. administration, will impact a wide range of essential products, including bread, pasta, oatmeal, cooking oil, and even beer. Canadian farmers and industry experts are warning that the policy could have severe economic consequences for both countries.
“This isn’t just a tariff on Canadian farmers—it’s a tax on every American family purchasing a loaf of bread, oatmeal, canola oil, and other food staples at the grocery store,” said Kyle Larkin, Executive Director of GGC.
“A 25% tariff is, in effect, a 25% tax on American consumers.”
The U.S. imports more than $17 billion worth of Canadian grain and grain products annually, a supply chain that helps meet domestic demand and maintain stable food prices. Key imports include wheat for bread, durum for pasta, oats for cereals, and canola for cooking oil and biofuels.
In 2023 alone, Canadian wheat exports to the U.S. exceeded $1 billion, oat exports reached $580 million, barley totaled over $200 million, and canola exports—vital for cooking oil and biofuels—were valued at $8.5 billion.
“Reckless tariffs will only lead to costly consequences,” said Tara Sawyer, Chair of GGC and Alberta grain farmer.
“This is both true for Canadian grain farmers but also American producers who rely on Canadian potash to fertilize their farms. Whether you’re growing crops or buying groceries, these tariffs will make life more expensive at a time when most are already being priced out."
Beyond food prices, the tariffs pose a risk to the broader U.S. agricultural sector. Canadian grain imports allow American farmers to focus on high-value exports, boosting their profits and strengthening North America’s position as a leader in global agriculture. Industry leaders argue that imposing tariffs on Canadian goods disrupts this balance, ultimately hurting both producers and consumers.
“It’s time to move past the tariffs and work together to continue creating the strongest international cross-border agriculture sector,” said Larkin.
“Policies like this only punish the people they claim to protect. Consumers and farmers, on both sides of the border, deserve better.”
As the tariff deadline looms, American families and businesses brace for price increases on essential food products. Meanwhile, farmers and industry advocates continue to call for trade policies that support rather than disrupt North America’s agricultural supply chain.