Canada faces $12B in potential U.S. food export losses due to tariffs, prompting push to diversify markets and boost domestic trade.

Farm Credit Canada reports that $12 billion in food and beverage exports could be redirected from the U.S. due to trade tensions and tariffs, urging Canada to reduce its reliance on the U.S. market to half of 2023 levels. The report recommends boosting domestic and interprovincial trade, leveraging existing free trade agreements, and expanding into global markets, particularly in Europe and Asia, with prepared foods—worth $8.6 billion in 2023 exports to the U.S.—highlighted as a key growth area. Target markets include China, France, Germany, the Netherlands, and the U.K., where longer shelf life supports international shipping. Recommendations include promoting “Buy Canadian,” strengthening Canada’s global food brand, and investing in domestic processing and infrastructure to increase value and resilience in the agriculture sector.