Recently, the threats of a 25 per cent tariff on live cattle and processed “beef” have sent jitters through the Canadian and B.C. beef industry. A pause in the deadline for the U.S. president imposing these tariffs has been relaxed for a few weeks but they have to be taken at face value.
Estimates have placed the impact on Canadian cattle and beef at 15 per cent reduction in price to the Canadian industry. That might be a benefit to Canadian consumers of beef in the Canadian beef retail outlets. It would be a direct hit to ranchers and farmers producing live cattle for export to the U.S. for fattening/finished there.
Young cattle sent to the U.S. and fattened there and sent back to Canada for processing would be subject to the tariffs, thus raising the price to consumers on both side of the border.
Here are a few points made by the Canadian Cattle industry leaders: Nathan Phinney, president, Canadian Cattlemen Association (CCA):
"International trade is advanced through negotiation and compromise, as was done with the revision of NAFTA by President Trump himself. Canadians purchase US$722/person of U.S. agricultural products each year while Americans purchase just US$118/person of Canadian agricultural products annually.”
Another leader, Bob Lowe, past president of the CCA says:
"The impact of this tariff on cattle producers will be felt immediately and severely," Lowe said. "The cattle sector is a highly integrated North American market. When dealing with live animals, you are not able to pivot quickly, and this tariff could cripple the world-renowned beef industry on both side of the border."
The statement said the Canadian beef industry will be seeking an exemption and will be advocating for any relief support necessary for Canadian beef producers.
They went on to say: “…the Canadian beef industry will be seeking an exemption and will be advocating for any relief support necessary for Canadian beef producers."
