Florian Possberg, a partner with Polar Pork Farms, is calling for tariff exemptions on agriculture in light of potential U.S. import tariffs on Canadian and Mexican products.
On February 3rd, U.S. President Donald Trump announced a 30-day delay on implementing 25% tariffs on imports from Canada and Mexico. While the delay provides temporary relief, Possberg warns that long-term tariffs could damage both U.S. and Canadian agriculture, particularly in the pork sector, which relies on an integrated supply chain across borders.
A Deeply Connected Industry
Possberg highlights how the pork industry operates similarly to the automotive industry, where products frequently cross borders for processing before final sale.
“Our industries are hugely integrated. They talk about the car industry, where parts of a car can cross the border six times before it’s finally assembled. It may not be six times in pork, but a lot of product moves across the border, gets processed in different parts of two nations, and then crosses back for sale. These relationships have been built over many years because they make good business sense.”
While trade disputes such as Country of Origin Labeling (COOL), health restrictions, and border impediments have historically caused friction, the pork industry has managed to work through these challenges. However, Possberg stresses that permanent tariff relief is needed to prevent long-term disruptions.
Avoiding Unfair Trade Barriers
Possberg acknowledges that supply management policies in poultry and dairy have historically been a point of contention in North American trade negotiations, but he hopes that free-trade industries like pork and beef won’t be penalized.
“We hope the tariffs can be eliminated permanently. If not across the board, at the very least, agriculture should be set aside. We’re unsure how this will unfold, as past U.S.-Mexico-Canada negotiations showed that supply management in poultry and dairy was a major irritant for the U.S. Hopefully, issues like that won’t be used against free-trade industries like pork and beef.”
While the 30-day delay offers some breathing room, Possberg emphasizes the need for a permanent solution to protect the livelihoods of farmers and the stability of North America’s pork industry.
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