Talking Points

The Associated Equipment Distributors (AED) expressed disappointment over the collapse of trade talks between U.S. President Donald Trump and Canadian Prime Minister Mark Carney on August 21, which resulted in 50% tariffs on many Canadian goods. AED President Brian P. McGuire emphasized the negative impact of tariffs on both economies and called for a return to negotiations. The Canadian Federation of Agriculture also urged continued discussions, highlighting the uncertainty created for farmers facing rising costs and market volatility.

• AED represents heavy equipment distributors across North America.
• Tariffs are damaging to sectors reliant on cross-border trade.
• Farmers are facing significant challenges amid escalating tariffs.

This story matters as it underscores the economic implications of trade relations between Canada and the U.S., affecting industries and consumers alike.

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Trade, markets and marketing

Industry groups urge return to bargaining table

The Associated Equipment Distributors (AED), which represents heavy equipment including agricultural equipment distributors across North America, is “disappointed” in the dramatic collapse of trade talks between U.S. president Donald Trump and Canadian PM Mark Carney on Aug. 21, which resulted an application of 50 per cent tariffs to many Canadian goods imported into the U.S. and a series of counter-tariffs from Canada still being announced at press time. Brian P. McGuire, president and CEO of the association, said that despite the disappointment, the group’s resolve remains strong. “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 if they’re imposed by Canada or the United States.” McGuire says the association will continue to work with officials and leaders to push for a return to the bargaining table.

The Canadian Federation of Agriculture has also publicly urged both countries to continue their negotiations, stating, “The breakdown in negotiations and escalation of new tariffs create uncertainty at a time when farmers are already facing significant challenges, including rising input costs, market volatility and increasingly unpredictable weather.”

Import reliance putting pressure on U.S. industry, says bureau

The American Farm Bureau Federation reported recently that internation produce imports are no longer simply serving the purpose of supplying fruits and vegetables in the absence of U.S.-produced fruits and vegetables, but rather are increasingly creating competition and pressure on domestic growers due to imports increasingly overlapping with U.S. growing seasons. With U.S. production declining or remaining relatively flat across many commodities (fruit production has fallen by 32 percent, vegetable production by 10 percent, since 2010), the Farm Bureau says greater dependence on foreign produce (imports have increased by 70 percent) creates potential risks involving supply chain disruptions including weather events, as well as food safety concerns. The organization is calling on governments to help the industry maintain a strong domestic specialty crop industry through addressing production costs, labour availability and risk management options. “Trade remains essential to meeting consumer demand for affordable, year-round produce, and strong agricultural trading relationships benefit the broader food supply chain,” wrote AFBF economist Daniel Munch, “But those benefits should not require accepting continued erosion of U.S production capacity.”

Expect high fertilizer prices past 2027: Research

New research from CoBank’s Knowledge Exchange shows that despite fertilizer prices retreating from the historic highs seen at the start of the Iran war, prices are expected to stay high – still above pre-war levels – through 2027 and likely 2028, and a “major headwind for the U.S. agricultural sector.” The geopolitical instability has led to constrained feedstock supplies and tightened phosphate availability, with an overall ripple effect keeping availability and affordability a top concern. With 50 percent of globally traded sulfur and more than 30 percent of global urea exports originated from the Middle East and shipped through the Strait of Hormuz, an estimated 31 ammonia plants in the region being impacted or even shut down and at least 20 plants in Russia damaged by Ukrainian drone attacks, global supply challenges are expected to continue, with phosphate markets expected to remain especially tight. According to CoBank, U.S. farmers have already adjusted their nutrient management strategies in response to the prices; rather than sharply cutting fertilizer use, many have relied more heavily on soil testing, variable-rate application technology and precision nutrient management to maintain yields, with many subscribing to the idea that under-fertilization can be more costly than higher prices.

Innovation and research

AI-powered app streamlines fusarium assessment

University of Guelph PhD candidate Riley McConachie has developed WheatScanR, a free mobile app designed to help farmers combat Fusarium head blight (FHB, one of the most destructive diseases in wheat which can lead to significant yield losses and grain contamination with harmful mycotoxins. Traditionally, assessing FHB has required manual inspection of hundreds of wheat heads, a time-consuming and subjective process. WheatScanR uses artificial intelligence and deep learning to provide a near-instant assessment from a simple smartphone photo, distinguishing between healthy and infected plant tissue within seconds. The app also offers practical management tools by counting wheat heads to estimate crop density and support yield predictions.

Funding and programs

Canada invests $50M in Natural Products Canada

The Government of Canada is investing $50 million in Natural Products Canada’s (NPC), a national network to help Canadian companies commercialize and scale food, bio-based products and agri-food technology. The investment is estimated to create more than 550 jobs, generate more than $1.8 billion in GDP and help NPC establish a new Capacity Building Fund. NPC has worked with more than 1,800 early-stage Canadian companies and invested in more than 100 companies.