Higher tariffs on products are eroding competition in the U.s tariff

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Higher tariffs on products  such as beef, pork,  fruits and vegetables, and grains  are eroding competition in the U.S. market,  squeezing margins for producers already  struggling with inflation,  labor shortages, and supply chain disruptions. The  agribusiness sector, which has thrived  on North America's integrated supply chains, must now  readjust. Alternative markets in Europe and Asia offer some opportunities, but they come with logistical challenges and regulatory hurdles that make them far less attractive than the  United States. The  idea that Canada  can simply  leave the  U.S. market is a fantasy; economic and  geographical realities dictate otherwise. Meanwhile, Mexico,  faced with similar tariffs, could turn to other partners  such as China,  widening the  gap between North  American economies. The most  troubling aspect of this shift is  the apparent lack of preparedness among Canadian  policymakers. There is  no indication that Ottawa fully  understands the  magnitude of the transformation  that is taking place. Instead of  working to  counter tariffs  through proactive trade diplomacy, we see Canadian leaders clinging to a multilateralism that Trump's policies  seek to dismantle. Retaliatory tariffs,  while politically necessary, are a  clear tool that  will not distract Washington from its  larger goal: strengthening trade to serve U.S. interests first and  foremost.
The Future of CUSMA
With tariffs becoming the norm rather than the exception, CUSMA itself  may become obsolete. Trump has long viewed NAFTA (and  later USMCA) as a bad deal for the  United States. His administration  will likely seek to replace it with  individual agreements,  in which the  United States can  use its economic  power to extract concessions from Canada and Mexico individually. The days of structured dispute resolution and trade predictability may be  numbered.
Addressing Interprovincial Trade Barriers
Canada cannot afford to ignore the deep inefficiencies  at its borders. Interprovincial trade barriers remain a self-inflicted wound that weakens the country's economic resilience.  As Ottawa  tries to respond to U.S. tariffs, businesses still struggle to move goods freely between provinces due to archaic regulations. If Canada hopes to offset the damage  caused by foreign trade shocks, it must first  remove these internal  barriers. A  unified and efficient  internal market is the best  basis for strengthening international  trading partnerships. The agri-food sector must prepare for a future where trade uncertainty  will be the  rule. Canadian producers  must invest in  strategies to diversify and expand into non-traditional markets, even if  this is  expensive. National policymakers,  for their part, need to shift their mindset from damage  limitation to proactive trade positioning.  It won't be  enough to counter U.S. tariffs. Canada  should build stronger alliances beyond North America and push for new trade agreements that  reduce dependence on the  United States.
Trump's tariffs are not just a policy shift; they  represent a fundamental restructuring of  the dynamics of global  trade. If Canada  doesn't adapt, our agri-food industry  will suffer.

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