U.S. to slap tariffs on Canadian mushrooms as growers warn of broader risks for agriculture
Posted on: May 15, 2026 02:36 IST | Posted by: Cbc
The U.S. Is nigh to smack countervailing duties on invigorated mushrooms grown in Canada, as canadian river growers monish of broader risks to the farming sector on both sides of the border.
Countervailing duties are slapped on imports judged to be unfairly subsidized. Similar U.S. Investigations have resulted in duties on Canadian softwood lumber for decades.
The Commerce Department launched the investigation in January after being petitioned by U.S. Growers who argued that several tax exemptions in Canada mean Canadian mushrooms are unfairly subsidized.
But Ryan Koeslag, executive vice-president of the Canadian Mushroom Growers' Association, says a tax exemption is an "unprecedented" justification for countervailing duties, given that farm products on both sides of the border benefit from such exemptions.
Carney stresses trade diversity as CUSMA deadline looms
Koeslag said that using general tax exemptions as a justification for countervailing duties could open up Canadian and American farm products to more tariffs.
"This not only has a broader implication to Canadian agriculture, but also to the American agriculture producer," he said.
"They've really opened themselves up to having other countries identify that, 'Hey, if the United States is going to start using tax exemptions as a countervail weapon, then we'll do the same against the United States.' So I think it could be a slippery slope for them in the long run."
The U.S. Also launched a separate investigation which could result in further anti-dumping tariffs on mushrooms later this year.
Fresh mushroom exports to the U.S. Jumped 13 per cent from 2023 to 2024 before declining by nearly four per cent last year, according to data from Industry Canada.
The countervailing duties are being put in place as Canada, the U.S. And Mexico are reviewing the trilateral trade pact that came into force in 2020.
The three countries have until July 1 to decide if they want to renew the Canada-U.S.-Mexico Agreement (CUSMA) past 2036, according to the text of the agreement.
But negotiators on both sides of the Canada-U.S. Border have said not all issues will be worked out by the beginning of July.
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