OTTAWA, CANADA — In a move to ease trade tensions, Canadian Prime Minister Mark Carney announced earlier today that Canada will eliminate its 25 percent retaliatory tariff on U.S. imported goods, previously violating the U.S.-Mexico-Canada Agreement (USMCA).
In March, former Prime Minister Trudeau initially retaliated against the United States’ 25 percent fentanyl and border-related tariffs by imposing the 25 percent retaliatory tariff on $30 billion worth of imports from the United States – included milled and brown rice. Since then, despite actions by the Government of Canada to alleviate the tariffs for certain U.S. imported goods for further manufacturing and processing, the tariffs created significant market access challenges for U.S. rice.
“We are very pleased to hear this announcement,” said USA Rice Chairman Keith Glover. “Canada is such an invaluable partner, and the elimination of these tariffs come at a critical time for our rice industry. Being in Washington D.C. just this week, we talked with USTR Ambassador Greer who expressed shared concerns over Canada’s retaliatory tariffs impacting USMCA-compliant goods, such as U.S. grown rice.”
Canada is a key market for U.S. rice, continuously ranking in the top five export markets. In 2024, U.S. rice exports to Canada reached nearly 210,000 metric tons, valued $180 million.
Glover continued, “We appreciate the Trump Administration’s efforts to get Canada to remove these restrictive tariffs and provide immediate relief to U.S. exporters as well as Canadian importers. We’re hopeful that this is the first step towards amending the trade tensions and will lead to Canadian consumers once again appreciating the value of high-quality sustainable U.S. rice.”
USA Rice will continue working with partners in both the private and public sector to ensure that the duty-free market access once again bolsters demand for U.S. rice in Canada.