This week, Canada implemented a 25% retaliatory tariff on an initial tranche of more than $20 billion in US imports, including $5.5 billion worth of agricultural products, the USDA’s Foreign Agriculture Service reported.
CBS News reported Thursday that President Donald Trump had paused tariffs on Mexican imports until April 2.
China responded to new US tariffs by imposing a 15% tariff on US agricultural products.
Canada’s list of products was expected to expand on March 25, to cover a second tranche of an additional $86 billion worth of imports, the FAS said.
LIST COULD EXPAND
In a separate press release, the Canadian government announced the list of goods that could become subject to a 25% tariff on March 25; this list is subject to stakeholder consultations, as the intent is to narrow it over the next 21 days, the FAS said. Canada’s countermeasures were meant to minimize the effect on Canadian businesses and consumers on the assumption that taxing imports also hurts domestic stakeholders.
Among the products covered by Canada’s retaliatory list announced on Tuesday were agricultural commodities and processed food products amounting to $5.5 billion in US exports to Canada, the FAS said. Products were selected to ensure that substitutes can be sourced domestically or from other foreign suppliers.
For dairy, poultry and egg products, the list currently covers mostly the “over access commitments” tariff lines, which normally are subject to prohibitively high over-quota tariffs, the FAS said. Trade in these products typically occurs under the “within access commitment” tariff lines, which are associated with Canada’s tariff rate quotas where goods enter the country duty free, under limited quantities.
The FAS said it expected the second retaliatory list (to be implemented on March 25), would include the “within access commitment” tariff lines as well, so that imports under TRQs would also be subject to the 25% surtax.
Last year, Canada was the second largest export market for US agricultural products valued at $28.4 billion, the FAS said. Of this, nearly $21 billion were exports of high-value consumer-oriented foods.
PROVINCIAL RESPONSE
In addition to the federal government response, various provincial governments also instituted countermeasures to US tariffs, the FAS said. Among these measures, several provincial governments instructed their respective Liquor Boards to remove US alcoholic beverages from their shelves and to prohibit the wholesale movement of such beverages to groceries, corner stores, bars and restaurants.
In 2024, the US exported $435 million worth of wine, $221 million in distilled spirits, and $41 million in beer to Canada, making it the US’ top alcohol export market, the FAS said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $197.00 per cwt to $203.12, compared with last week’s range of $199.80 to $207.87 per cwt. FOB dressed steers, and heifers went for $310.62 per cwt to $313.95, compared with $313.22 to $319.42.
The USDA choice cutout Thursday was down $0.42 per cwt at $313.12 while select was up $0.98 at $303.51. The choice/select spread narrowed to $9.61 from $11.01 with 107 loads of fabricated product and 15 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $380.80 per cwt, and 50% beef was $109.34.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.30 a bushel over the May corn contract, which settled at $4.64, up $0.08 1/4.
The CME Feeder Cattle Index for the seven days ended Tuesday was $276.09 per cwt, down $1.78. This compares with Thursday’s Mar contract settlement of $274.02, down $2.07.