Background Banner

Ag Trade Concerns Remain as Negotiations with Canada Resume

Published: Jun 30, 2025

Hear/Download the Audio Report HERE.   

Canada’s Department of Finance announced over the weekend that it would rescind a digital services tax at the center of a trade dispute between the U.S. and Canada, allowing negotiations between the countries to continue. But as USMEF Vice President of Economic Analysis Erin Borror explains in this Audio Report, trade concerns remain for the ag community. 

Canada recently enacted legislation that enshrines the country’s dairy and poultry supply management systems, protecting them from being altered in trade negotiations. Canada’s livestock and grain sectors opposed the move, warning it will tie negotiators’ hands and lead to lost opportunities in global trade. 

Since March, Canada has also had in place a 25% retaliatory duty on sausages imported from the United States. Canada is the largest export destination for U.S. sausages, accounting for more than $275 million in sales in 2024. 

The U.S. and Canada have set July 21 as a target date for reaching a trade deal. 

TRANSCRIPT