Photo Courtesy of Glen Linsdey
While a potential trade tussle between Canada and the United States is on hold for now, the president of the Grey County Federation of Agriculture is still concerned about the ongoing threat of 25 per cent tariffs.
Keith Reid says while there are a lot of uncertainties with how the tariffs could affect local farmers, he expects costs to increase.
“The tariffs put in place is definitely going to cause negative effects, the perfect storm for less ability to sell and more costs associated with our every day business,” says Reid.
He notes some of Canada’s planned retaliatory tariffs would have specifically targeted fertilizer, seeds and chemical products which are purchased in the United States, as well as beef, which is a primary export from the Grey Bruce region.
“Probably the beef is going to be the hardest hit, but every industry within agriculture is going to be affected,” says Reid.
He says if tariffs come into effect, there will be a transition period where farmers will look to establish global trade partners or source what they need in Canada.
“The primary concern is that local operations are able to weather this storm and for how long that is gong to take, we don’t know. There is a lot of businesses that are already straining and this is definitely not going to help, so we are hoping that people can get through this,” says Reid.
He adds the effects of the tariffs would build over time and impact consumers when they go to the grocery store.
“As a consumer, I think the thing to do is just have a mindful eye when you are at the grocery store and looking for things locally, and Canada products is probably now more important than ever,” says Reid.
Reid hopes with the pressure the tariffs will put on farmers not just across Canada, but those in the United States, an agreement will be reached soon.
“The agriculture industry is amazingly resilient and we have been through a lot of storms before, but it will be a matter of adapting and swinging with the change,” says Reid.