February 5, 2025

 

US tariffs will lead to increased cost of beef "on both sides of the border", Canada's cattle producers say

 

 

 

Canadian cattle producers have warned the cost of beef "will greatly increase on both sides of the border" after US president Donald Trump followed through on his long-threatened plan to impose significant tariffs on three major trading partners.

 

Trump currently agrees to hold off imposing the tariffs on Canada and Mexico for 30 days, but not for those aim at China.

 

On February 1, the president signed an executive order applying tariffs of 25% on all imports from Canada and Mexico (with the exception of Canadian oil and energy products which will incur 10%) and 10% tariffs on goods from China.

 

The sanctions was to start from February 4.

 

Mexico and Canada both supply large numbers of feeder and slaughter cattle into the US production system every year, respectively exporting 1.2 million and 730,000 cattle in 2023.

 

Cattle exports from Mexico were temporarily suspended by the USDA in November 2024 due to a detection of New World Screwworm in southern Mexico.

 

The USDA lifted the ban and announced the resumption of cattle and bison imports from Mexico on February 1 – the same day Trump announced the new 25% tariffs.

 

The Canadian Cattle Association (CCA) and National Cattle Feeders' Association expressed their "extreme disappointment" at the 25% tariffs to be implemented on February 4.

 

"The integration of the North American live cattle and beef supply chain is unlike anywhere in the world, contributing to both food security and local and regional food systems," said Nathan Phinney, CCA's president, in a statement. "The United States and Canada have the largest two-way trade in live cattle and beef in the world.

 

"American-born cattle are fed in Canadian feedlots before returning to the United States for processing.

 

"Tariffs would greatly increase the cost of processing cattle and ultimately the cost of beef on both sides of the border."

 

Will Lowe, chair of Canada's National Cattle Feeders' Association, said a substantial number of live cattle were transported from Canada to the US for processing.

 

US processing plants relied on Canadian live cattle to maintain maximum processing capacity and provided significant economic benefits and job opportunities to the northern US states.

 

Phinney said Canadian producers expected trade agreements "to be respected and honoured".

 

"International trade is advanced through negotiation and compromise, as was done with the revision of NAFTA by President Trump himself," Phinney added.

 

The statement said Canadians purchase US$722/person of US agricultural products each year while Americans purchase just US$118/person of Canadian agricultural products annually.

 

"The impact of this tariff on cattle producers will be felt immediately and severely," Lowe said. "The cattle sector is a highly integrated North American market. When dealing with live animals, you are not able to pivot quickly and this tariff could cripple the world-renowned beef industry on both side of the border."

 

The statement said the Canadian beef industry will be seeking an exemption and will be advocating for any relief support necessary for Canadian beef producers.

 

"The impact of the tariff will be felt by beef producers and all of agriculture across North America, jeopardising American jobs throughout the value chain and increasing costs for citizens of both Canada and the United States at the grocery store and in restaurants," the statement said.


- Beef Central

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