How U.S. tariffs could affect Canada’s agriculture industry and consumer prices

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As Donald Trump’s inauguration looms, Canada’s agriculture industry is waiting with bated breath to see whether the sweeping tariffs he’s threatened will come to pass.

Rosa Saba, The Canadian PressJimmy Jean, vice-president and chief economist at Desjardins, discusses what influence the Trump administration will have on Canada a second time around.

“We’ve tried over the years to diversify our export base, and we’ve managed to do it to some extent, but the reality is that we rely a lot on the United States,” said Gervais.Canola is one of the big Canadian exports that would be hurt by tariffs. Market watchers have warned that U.S. consumers could be in for higher inflation as a result of Trump’s protectionist bent.

Canada heavily relies on the U.S. for certain food items, said Fraser, like produce — especially during the winter.The last time Trump was president, the long-standing North American Free Trade Agreement was scrapped and replaced by the Canada-United States-Mexico Agreement.“There are ... dispute resolution mechanisms within that agreement. So putting tariffs on products that are supposed to be allowed through a free trade agreement is counter to what the agreement says.

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