New tariffs went into effect on August 22 on billions of dollars’ worth of U.S. imports from Canada after trade talks between the neighboring countries collapsed.

According to an August 25 Wall Street Journal report, Canada intends to impose retaliatory tariffs starting Sept. 8. Those tariffs will be concentrated in sectors like ag machinery, along with steel, dairy, paper and electronics. 

AEM’s Senior Vice President of Government and Industry Relations Kip Eideberg, said in a statement,

“The United States and Canada have built the world's most integrated manufacturing ecosystem, supporting jobs, driving investment, and powering economic growth across North America. Continued trade uncertainty and escalating tariffs create serious challenges for manufacturers and the businesses that depend on cross-border supply chains. We urge U.S. and Canadian officials to return to the negotiating table, remove harmful tariffs, and secure a path to preserve and strengthen the USMCA.”

In a statement Brian McGuire, president and CEO of AED, expressed the trade group’s disappointment that the U.S. and Canada could not come to an agreement. He said, 

“AED has always had a stance supporting free and fair trade in North America, as the best means for achieving economic prosperity and growth in the sectors our members serve. Tariffs and retaliatory tariffs damage the economies on both sides of the border. Any measures that target equipment that builds, feeds and fuels both countries are detrimental regardless of if they're imposed by Canada or the United States. AED will continue to work with officials and political leaders on both sides of the border to encourage a return to the bargaining table.”

We'll have more on the impacts in the September edition of Ag Equipment Intelligence. 

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