Farm Bureau concerned about Canadian tariffs

Reciprocal tariffs from Canada on a variety of goods—including farm equipment—are set to go into effect on Tuesday, and the Montana Farm Bureau Federation (MFBF) warns that these actions will inflict significant financial harm on Montana farmers and ranchers.

The new duties follow the announcement by the Trump Administration regarding the breakdown of trade talks and the subsequent imposition of additional trade tariffs against Canada. Expressing concern over the trade disruption, Montana Farm Bureau Federation President Cyndi Johnson highlighted the role trilateral trade plays in the state’s agricultural economy.

“Canada is a very important trade partner and our neighbor directly north. We’ve had good trade relations with Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA),” said Johnson.

The USMCA is subject to a mandatory review every six years. July 1, 2026, marked the first formal review since the agreement took effect in 2020. Under the terms of the agreement, it automatically expires after 16 years unless renegotiated, but critical negotiations fell apart mid-review.

The trade breakdown places Montana's top export market in jeopardy. According to the Office of the U.S. Trade Representative, Canada remains the state’s largest international trade partner; in 2025 alone, Montana exported $958 million in goods to Canada, representing 45 percent of the state’s total goods exports. Historically, Canada has served as one of the most critical agricultural trade partners for the U.S. since the original cross-border free trade agreement was established in 1989.

Strong trade frameworks with Canada and Mexico have previously eliminated nearly all tariffs on U.S. agricultural goods, allowing most Montana farm products to enter those markets duty- and quota-free.

Johnson, a wheat farmer from Conrad, explained how these counter-tariffs directly affect operational costs for local producers:

“The reciprocal tariffs from Canada include 15 percent on farm equipment, including harvesting equipment. Our farm frequently purchases quality used equipment from Canada. On the flip side, Canadians buy our lower-quality wheat for animal feed. These new tariffs will disrupt a mutually beneficial system.”

“Additional tariff escalations and subsequent retaliation will hurt U.S. agriculture at a time when farmers and ranchers are already struggling,” Johnson emphasized. “We strongly urge both the U.S. and Canadian governments to return to the negotiating table and reach a swift resolution.”

Johnson noted that maintaining strong relations with Mexico is equally vital to Montana's agricultural trade balance.

“Mexico is a major trading partner as well. In 2025, Montana shipped $74 million in agricultural goods to Mexico. While the USMCA agreement may need minor adjustments, it certainly doesn’t require a complete overhaul. It’s working well for U.S. farmers.”