Carbon tax puts Canadian agriculture at competitive disadvantage, and Trump tariff not even imposed yet

The federal carbon tax has disadvantaged Canadian farmers against their American competitors and contributed to higher food prices for Canadian consumers. Those are among the key findings of a new study exploring the adverse effects of the Trudeau government’s carbon tax on the agri-food sector — and this was before U.S. President-elect Donald Trump upped the ante by vowing a 25 % tariff on Canadian products.

Automatically increasing each year, the carbon tax is currently $80 per tonne but is slated to hit $170 per tonne by 2030. It’s charged on the carbon in various fuels, including diesel and gasoline.

The researchers, led by Dalhousie University’s Dr. Sylvain Charlebois, found that the tax has already boosted food prices noticeably as producers and manufacturers pass down resulting extra costs to consumers.

Their peer-reviewed study, Implications of Carbon Taxing Policies on the Food Supply Chain in Canada, reported a “loss of competitive ground” for Canadian producers of grains, fruits and vegetables since the 2019 introduction of the carbon tax. 

Canada’s self-inflicted carbon tax was already weakening the competitiveness of this country’s agri-food sector before Trump’s headline-making promise to impose a 25 % tariff on all Canadian goods, Charlebois observed in an online commentary reacting to the bombshell Nov. 25 announcement from the incoming American president.

https://farmersforum.com/carbon-tax-puts-agricultural-producers-at-competitive-disadvantage/