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“American ranchers and farmers are definitely a big part of the base that elected President Trump,” said Alberta’s Secretary of Agriculture and Irrigation.
And, Sigdeson told me, that’s what they told him: “Listen, we’ve provided a runway for the president to address and promote strategies related to tariff inequality.” But as farmers enter the planting season, they also say that time is running out, “that runway has become very, very short.” So far, farmers have been able to delay decisions. It is the choice of planting season, and the choice of whether to plant what and how many acres to plant.
I want to talk to Sigurdson about what this tariff blitz means for farmers and ranchers on this side of the Canadian U.S. border. Sigurdson was first elected as the MLA in Highwood, southern Alberta in 2019, and two years ago Prime Minister Danielle Smith moved him into the cabinet.
“Is that a cow on the lapel?” I asked him. He smiled and said, “Yes, this is a small gun from the Canadian Bull Association.” Apparently, Sigurdson wore a green jacket and a plaid shirt, drawing the Canadian team vibe throughout the country.
We are in a trade war and agriculture is pawn. Trump’s tariffs on steel and aluminum have made it more costly to invest for farmers, ranchers and agri-food producers, and exports have been approved. In the short term, this will affect food affordability. In the long run, global food demand is expected to increase by 65% to 85% by 2050 – food security may be an issue.
While Trump is trying to rebuild relations with the U.S. and almost the world, tariffs and retaliatory tariffs are threatened, in place and suspended – particularly heavy. In some cases, tariffs have become a de facto trade embargo. One example is the retaliatory tariffs on U.S. exports to China at 125%.
Sigderson reported that China’s tariffs “had a lot of pain for farmers.” He explained: “China is our largest market. In response to Canada’s tariffs on Chinese electric vehicles, China imposes retaliatory tariffs on Canadian agricultural exports.
“You know,” Sigdeson said, “It was a little action when Ottawa decided to impose tariffs on electric cars in China. I believe they are trying to protect the automotive industry and support some changes in the United States.”
This led to an immediate anti-dumping investigation by China, which he clarified was somewhat different from the tariffs. The industry is fighting WTO-level allegations. But, he added: “Because the federal government has not returned to the table to talk to China.” The Chinese have escalated the trade war, and tariffs on canola, peas and pork have been escalated.
“Punishing farmers and ranchers in Canada is a tariff on an unfair approach to the squad,” Sigderson declared. “If Ottawa wants to continue claiming that this is the squad’s approach, they need to start dealing with issues that affect the team’s west.”
As for the trade relations between Canada and the United States, everyone held their breath. In early March, Canada imposed retaliatory tariffs on US imports worth $30 billion, including orange juice and peanut butter, in response to Trump’s steel and aluminum tariffs. The second wave of retaliatory tariffs on Canadian plans were suspended when the U.S.-US merger on goods was suspended.
“I think unfortunately our federal government has put a retaliatory tariff on retaliatory tariffs before the election,” Sigderson said. “These retaliatory tariffs are just more of a matter of negotiating for us.” And, he added, “I’m disappointed to see liberals … continue to use terms like ‘fight’ and ‘backward’. All of this is just procrastination and making this worse.
“What I’m going to say is that it’s time to put emotions aside and understand the importance of finding a direct solution,” Sigurdson advises. “Fighting, revenge only leads to what we see with China.” ” Instead, what he wanted to see was the protection of the Kusma Agreement.
After Smith’s leadership, Sigurdson traveled to the United States several times this year to talk with senators, governors, congressmen and women about food security, food affordability, and maintaining the value of Cusma. “It’s important that we can have a meeting with the Deputy Secretary of the USDA,” he said with a smile.
But the minister also knows that Alberta agricultural producers cannot put all their eggs in one or two export baskets. “That’s why my first international trade mission was Seoul, South Korea, and then Tokyo, Japan.” In June this year, he planned to return to the Philippines and other export markets. In April, Smith led the Alberta Trade Mission to Japan and South Korea to talk about Canada’s energy and agri-food exports.
Export markets are not the only way to maintain Canadian agriculture and agro-food. In Alberta, there are valuable opportunities – convert canola into biofuels and cooking oils, potatoes, fries, and flour. He said in the province last year, Sigurdson reported “a record $3 billion in agricultural processing and value-added investment,” he said, attributed to Alberta’s agricultural experience investment tax credit and lower tax rates.
Politicians of all kinds of stripes have promises to promote free trade across Canada, something Alberta is eager to see accelerated. But Siguedson is not naive about the bureaucratic elbow grease needed to achieve this. “When it comes to livestock, Ottawa has a lot of work to do at the CFIA (Canadian Food Inspection Agency),” he said. “It’s not an easy task – it’s a mountain – but we have to start biting a bite every day and start attacking it, not lose focus on it.”
Building infrastructure capabilities is another priority. “It means roads, it means tracks, it means ports, it means air, it means all,” Sigurdson said, highlighting that including bringing oil into the pipeline and releasing the track’s agricultural capacity.
Farmers and one person hope that politicians have a hard time thinking about the future. But now the average age for ranchers or farmers is 65 years old, Sigurdson winces. With land prices as well as equipment prices rise, export markets are at risk and all of this anxiety and stress, it is an attractive time for an aging farmer or rancher to cash in.
It’s everywhere – the runway gets very, very short.
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