30-Day Delay Offers Opportunity to Address Canada, U.S. and Mexican Trade Issues

A partner with Polar Pork says President Donald Trump's decision to delay across the board tariffs on U.S. imports from Canada and Mexico offers an opportunity to develop long term solutions and is welcome news.On Monday the Trump Administration agreed to delay by 30 days an across-the-board 25 percent tariff on products imported from Canada and Mexico.

Florian Possberg, a partner with Polar Pork, says Canadian, U.S. and Mexican agriculture, especially the beef and pork sectors, are highly integrated and about a third of all Canadian pork exports, about four million early wean and feeder pigs and a million and a half market hogs end up in the U.S. so a 25 percent tariff would have been devastating.

Quote-Florian Possberg-Polar Pork:

We're lobbying with our partners in the U.S. to lobby President Trump to not implement the tariff, period.It does give us time to lobby our producer partners in the U.S., Senators, Congressmen, particularly in our case in Canada, the northern state politicians.They know their states would be significantly impacted by any tariff like this.

So, it really gives time for common sense to prevail.As well, Canada has made some significant moves to satisfy the drug and illegal immigrant issues that were a big promise by President Trump in getting elected last November and being installed in January.So, hopefully we can satisfy that political need that he has for a win on immigration and drugs and we'll be spared the tariffs.

Possberg acknowledges, there have always been trade irritants such as country of origin labelling and health restrictions but we have always been able to work through those issues.He says the hope is that the tariffs can go away permanently but if that isn't possible that agriculture can be exempted although, given the U.S. position on Canada's supply managed commodities, how that might play out is uncertain.