By Meg Deak, Local Journalism Initiative Reporter, Woolwich Observer
September 27, 2026
Canada-U.S. trade tensions are impacting Ontario farmers by creating market uncertainty, raising equipment costs, and disrupting cross-border agricultural supply chains. Following failed trade talks, the U.S. imposed tariffs of up to 50 per cent on roughly $20 billion in Canadian goods, including dairy, alcohol, cut flowers and honey.
The U.S. tariffs came into effect last month. In response, Canada implemented a counter-tariffs on some products on September 8.
“I think the biggest thing that’s impacting farmers across Ontario in Canada is just overall rising costs of all the goods and the inputs that we use in our businesses,” said Drew Spoelstra, president of the Ontario Federation of Agriculture (OFA).
“That’s certainly having an effect right across the board. Doesn’t matter what sector of the agriculture business you’re in, there’s a big effect.”
Geopolitical conflicts and trade bottlenecks have already restricted the global supply of fertilizer, such as urea, pushing up annual expenses for many farmers. Increases in fuel prices have also put pressure on farmers’ wallets, contributing to higher shipping costs to get produce and materials to market.
“When there are tariffs applied in the U.S. and when there’s counter-tariffs applied here, ultimately that’s going to increase the cost of the goods that we’re using, and that’s a concern for all our farmers. We’re already seeing fuel costs doubled, not necessarily because of tariffs, but other concerns around the world. Fertilizer costs continue to rise, seed costs, things like that, are having a big impact on farmers,” said Spoelstra.
Some sectors will be hit harder than others. The 50 per cent levy on Canadian honey was a massive blow to domestic producers, prompting beekeeping federations to lobby Ottawa for emergency financial assistance to protect vulnerable operations.
“[Market conditions] are changing day to day. So, there’s a ton of uncertainty in the marketplace right now, and we could wake up tomorrow under a whole new different set of rules, and that’s not what we want to see. We need stability for our businesses and with our trading partners, and we want to continue to invest and grow our businesses here in Canada and be able to trade with our biggest trading partner and their biggest trading partner across the border in the U.S.”
Spoelstra noted that the OFA is advocating for different support for farmers, such as increased access to capital and advanced payment program enhancement, to help them through uncertain times.
“Farmers need access to capital and permanent increases to the advance payments program is a good start. Making sure that we have support through increased funding to Farm Credit Canada and other organizations that can help farmers kind of weather the storm, and then ensuring that the programs we have through business risk management programs are adequately funded and that they respond to these concerns is important too.”
Mark Reusser, OFA director for Zone 9 (Dufferin, Waterloo, and Wellington counties), added that spiked equipment costs represent another heavy financial burden. Mutual import duties of up to 50 per cent on selected cross-border trade lines have significantly raised manufacturing and acquisition expenses for heavy machinery. For farmers looking to upgrade, the current climate is forcing them to wait.
“Is now the time to buy a new combine, a new tractor, and build a new barn? Am I going to repair that old piece of machinery, or am I going to buy a new piece? It’s a lot easier to make those kinds of decisions when farmers have the security of knowing what’s going to happen tomorrow,” said Reusser
While farming is inherently unpredictable due to weather and external market factors, this year has brought unprecedented volatility.
“You may know what the rules are today. What will they be tomorrow? And the day after that, and the day after that? What that does is influence farmers’ planning,” said Reusser.
“If I’m going to build a new barn, do I want to take the added risk of building a new barn in times when I’m not sure what the price of my product will be if it’s exported to the U.S.… In times of increased risk, farmers are tempted to not invest as quickly as they otherwise might.”
Amidst the friction, Reusser noted that farmers have always been a resilient bunch, and Spoelstra emphasized that advocacy groups are working hard to ensure their voices are heard in Ottawa.
“Farmers are eternal optimists. We always think, well if I don’t have a good crop this year, I’ll have a good one next year. The weather will be better tomorrow,” said Reusser.
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“Perhaps we should think of things like that about the geopolitical situation.”
