Caught in the Middle: Canadian Agri-Businesses Urge Support as China Seeks Closer Ties Amid Trade Tensions

Canadian agri-businesses are facing rising challenges due to global trade tensions, prompting renewed calls for government support. According to recent survey data from the Canadian Federation of Independent Business (CFIB), 88% of Canadian agri-businesses believe the country should strengthen trade ties beyond the U.S. and China—Canada’s two largest agricultural trade partners.

The data, based on over 2,000 CFIB member responses, reveals that 36% of Canadian agri-businesses are being affected by China’s retaliatory tariffs, and nearly one in four (23%) are taking a direct financial hit. These tariffs target key commodities like canola oil, canola meal, peas, pork, fish, and seafood products.

“While the focus has been on U.S. tariffs, Canadian agri-businesses have been even more deeply harmed by China’s actions,” said Juliette Nicolaÿ, Policy Analyst at CFIB. “Producers need greater attention and support, and many feel current government programs are falling short.”

Only 10% of surveyed agri-businesses say that federal and provincial governments have done enough to help.

China expresses interest in closer Canada ties

In a parallel diplomatic development, China has publicly expressed interest in working with Canada to push back against American trade pressure, signaling a willingness to strengthen bilateral ties. A report from China’s Foreign Ministry noted that both countries have the potential to “enhance cooperation and jointly oppose U.S. bullying,” even as China maintains significant restrictions on Canadian agricultural products.

This geopolitical balancing act leaves Canadian producers in a precarious position—caught between two global superpowers, both crucial to the agri-food export economy.

Call for government action grows

Jasmin Guénette, Vice-President of National Affairs at CFIB, stressed the urgency of diversifying trade and removing barriers for Canadian SMEs:
“Our agri-businesses risk having unsold inventory, and some are already losing buyers. They need clarity and support to move forward and plan their operations.”

As international trade dynamics shift, Canadian pork producers and exporters are calling for concrete action to secure stable, diversified markets and reduce regulatory burdens at home.