The U.S.-Canada trade war is intensifying, and farmers along the northern border say the fallout is already hitting their bottom line as new retaliatory tariffs take effect.
Canada announced countermeasures on roughly 20 billion dollars of American goods after the United States imposed fresh 50 percent tariffs, according to officials. The response will touch a wide range of products, including steel and farm machinery, raising costs for producers in rural border states such as Montana, where Canada is the top export market.
U.S.-Canada trade war drives up equipment costs
Outside Great Falls, wheat and barley grower Steve Sheffels relies on Canadian-made headers, the large steel cutting attachments for his combines. He said they are the best fit for the region’s tough conditions.
With the new measures, farm equipment faces retaliatory duties of 15 percent or higher, complicating decisions on upgrades.
Sheffels said he has been considering a new drill and grain bins that come from Canada, but higher prices and uncertainty could put those purchases out of reach. He described the broader dispute as needless and worrying for producers who depend on stable trade.
Grain growers are already contending with flat commodity prices, a second trade confrontation spanning two administrations, elevated diesel costs, and rising fertilizer bills. The added tariff pressure, farmers say, is another strain on margins.
Cross-border ties underpin Montana’s ag economy
Canada is Montana’s largest trading partner, touching three provinces and accounting for about 1 billion dollars in sales across the border. Recently, Montana producers have shipped significant volumes of barley to Canadian feedlots, along with cattle, which has been a lifeline for the state’s agricultural sector.
“It’s just sad that food has to be a bargaining chip,” said Jillien Streit, who leads the Montana Department of Agriculture and farms with her family near the border. She noted the deep practical links, from frequent trips to Lethbridge for parts to sending about 15 percent of their cattle north to be finished.
Streit said she believes farmers will weather the current dispute by maintaining strong business relationships with counterparts in Canada, many of whom are also caught in the middle.
Ripple effects beyond the farm gate
The strain is not limited to agriculture. At the Montana World Trade Center in Missoula, Executive Director Brigitta Miranda-Freer warned that an adversarial tone toward Canada could threaten orders for small manufacturers and affect key service and tourism industries that depend on cross-border travel and trust.
She said Montanans value genuine, personal business ties that could be undermined by escalating rhetoric and tariffs.
For Sheffels, the issue feels close to home. He called Canada a critical partner and noted his own family connection north of the line.
“You don’t treat your neighbors like this,” he said, reflecting the interwoven nature of families and commerce along the border and the unease many feel as the dispute deepens. For broader context on how trade and economic policy shifts can ripple through markets and jobs, see Trump jobs report sparks frustration over inflation, rates.
