Grain Growers of Canada Calls for Federal Action to Protect Farmers and Trade Stability

THUNDER BAY – BUSINESS – Canadian grain farmers are facing a major financial threat as the United States imposes 25% tariffs on Canadian grain and grain products. The move, which affects billions of dollars in exports, is raising concerns about the viability of family-run farms and the impact on food prices across North America.

A Major Blow to Canadian Grain Exports

The United States is Canada’s largest agricultural trading partner, importing over $17 billion CAD worth of Canadian grain annually. These new tariffs create uncertainty in trade relationships, putting a strain on farmers who already operate on tight margins.

“Tariffs of this magnitude will put family-run grain farms at risk by introducing widespread market uncertainty,” said Kyle Larkin, Executive Director of Grain Growers of Canada (GGC). “These unjustified tariffs threaten that trade relationship—and farmers’ livelihoods.”

Canada exports over 70% of its grain to over 150 countries, and pricing for key crops such as wheat, canola, oats, barley, and pulses is tied to global markets. Trade disruptions lower farmgate prices, making it harder for growers to remain profitable.

Family Farms at Risk

For grain farmers across Ontario, including Northwestern regions like Thunder Bay, these tariffs add to an already challenging economic environment. Increased costs for fuel, fertilizer, and regulatory compliance have left many farms struggling to stay afloat.

“Margins are already razor-thin, and an added financial burden like this could put the future of many family farms in jeopardy,” said Tara Sawyer, Chair of GGC and an Alberta grain farmer.

“Canadian family-run grain farms are already facing death by a thousand cuts through increased input costs, regulatory burdens, and taxation,” added Larkin. “Uncertainty with our largest trading partner, combined with ongoing instability with China, could push many family farms to the brink.”

A 25% “Food Tax” for American Consumers

Beyond the impact on Canadian farmers, the tariffs could also drive up food prices in the United States, affecting everyday grocery items such as:

• Bread and pasta (made from Canadian wheat)
• Oatmeal and granola (made with Canadian oats)
• Canola oil (used in cooking and food processing)
• Beer and whiskey (which rely on Canadian barley)

“A 25% tariff on Canadian grain and grain products is effectively a 25% tax on American consumers who purchase groceries every day,” said Larkin. “At a time when both Canadians and Americans are struggling with food affordability, this policy will only make matters worse.”

GGC Calls for Federal Action

GGC is urging the Canadian government to take immediate action to push for the removal of these tariffs and protect the interests of grain farmers. Without intervention, both farmers and consumers will bear the economic burden of disrupted trade.

As discussions around critical mineral supply chains take center stage in Ontario, the agriculture sector is now facing its own supply chain crisis. For Northwestern Ontario’s grain industry, the future of trade with the U.S. could shape the region’s economic stability.