lorian Possberg, a partner at Polar Pork Farms, is calling on the federal government to take swift action to avoid a 25 percent U.S. tariff on Canadian and Mexican pork imports. The proposed tariff, driven by U.S. President-elect Donald Trump’s concerns over illegal immigration and illicit drug sales, poses a significant threat to Canada’s pork industry.
The U.S. remains Canada’s largest importer of processed pork, receiving over five million live hogs annually from Canadian producers. A sudden 25 percent tariff would have a devastating impact on the sector.
“We’re a huge exporter of pork from Canada,” said Possberg. “The United States is our largest importer of processed pork. A 25 percent sudden reduction in our income would be a huge burden.”
He explained that Canadian pork prices are typically based on U.S. prices, minus freight and border fees. A tariff of this magnitude would not only impact live hog exports but also reduce the market hog prices paid to Canadian processors.
Turmoil in Ottawa Compounds the Issue
Possberg expressed frustration with the federal government, citing political turmoil as a barrier to addressing the issue effectively.
“Our federal government seems dysfunctional right now,” he noted. “There’s turmoil in Ottawa that probably puts us in a much weaker position than we should be. Our provincial leaders are stepping up, but there’s only so much they can do. Ottawa needs to get their program together and act in a way that satisfies the Americans.”
The pork industry, a key player in Canadian agriculture, finds itself as an innocent bystander in a larger geopolitical dispute. Possberg and others in the industry are hopeful that Canadian politicians can work with their U.S. counterparts to resolve the issue and avoid the punitive tariffs.
A Critical Time for Action
The potential tariffs come at a time when Canada’s pork producers are seeing financial recovery after a disastrous 2023. Lower-than-expected hog numbers, as reported by the USDA, contributed to improved market conditions in 2024. However, the future remains uncertain as the looming tariff could reverse these gains.
For now, Canadian pork producers are left waiting anxiously for Ottawa to take decisive action to protect their industry and maintain their critical trade relationship with the U.S.
Swine Web will continue to monitor and report on this developing story.
