While everyone’s still talking turkey and figuring out what to do with their leftovers, I’m thinking rabbits. As in rabbit holes. As in tracking the hot topic that is the threat of 25% tariffs by President-Elect Trump, which he posted on a social media outlet Nov. 25.

After doing a deep dive into data from the Canadian segment of Ag Equipment Intelligence’s 2025 Dealer Business Outlook & Trends Report last week, I was curious to learn how our counterparts across the northern border feel about the potential impact of threatened tariffs. So down the rabbit hole I went.

What was I looking to find? The manufacturer’s view. How much Canadian equipment manufacturers rely on the U.S. How little or how much of a concern it is for the Canadian ag industry overall. Here’s a snapshot summary of what I found. The reaction came in fast and furious.

Being the intel seeker that I am, both by nature and by mandate of my role, I dug a little further to see what those closest to the issue, and those who study numbers for a living, had to say. The Radio Canada headline, “Trump tariffs would crush Canada’s economy: Why some industry leaders are calling his bluff” definitely got my attention. As did the fact that on Nov. 25, the Canadian dollar fell to its lowest point since 2020 after the tariff threat on Canadian imports by the President-Elect.

Across print, radio and television reporting outlets I delved into, Canadian business leaders and owners are sounding the alarm on the potential devastating impact such a move would have. The Canadian Press reported, “The threat of tariffs added a further drag on the loonie, which has been moving lower against the U.S. dollar since September.” Words like “devastating,” “crushing blow” are hard to overlook. Reflecting the high level of concern, on Nov. 29, Canadian Prime Minister Justin Trudeau met with Donald Trump at the president-elect's Mar-a-Lago resort. Speaking to reporters on Saturday morning, Trudeau called the conversation "excellent," but did not respond to additional questions. In a post on X, he thanked Trump for dinner and added, "I look forward to the work we can do together, again."

In a Nov. 26 news report by Canadian Broadcasting Company (CBC) reporter Jenna Benchetrit, she writes, “From leaders in the auto industry to farming, Canadian players say patience is a virtue when it comes to Trump’s tariff threats — and that the mutually beneficial nature of the Canada-U.S. trade relationship worth more than a trillion dollars, shouldn’t be underestimated.”

“Oil, energy and autos would bear the brunt of tariffs, if they’re implemented at all,” she added, summarizing input from across the business spectrum that Trump’s threatened 25% tariff on imported goods would have a devastating impact on Canada’s economy. But some Canadian workers, industry leaders and economists aren’t convinced they’ll actually be implemented. The report quoted Charles St-Arnaud, chief economist at Alberta Central, a trade association for the province’s credit unions, who said, “It’s a cost on Canada and Mexican businesses, and American businesses” because the countries have a deeply intertwined supply chain. St-Arnaud added, “Nothing has been announced yet, but if it was to happen, it would be a negative for our economy,” added St-Arnaud. The threat of tariffs may be purposeful as some speculate the incoming administration would again leverage the threat in advance of the renewal of the Canada-United States-Mexico-Agreement (CUSMA) in 2026.

In another CBC report published Nov. 26, Manitoba Premier Wab Kinew told an audience at the Association of Manitoba Municipalities Fall Convention that the damage from a 25% tariff on Canadian goods entering the U.S. cannot be overstated. He told delegates that every province is working to fight the threatened sanctions, saying, “The bottom line is it would mean a recession for our province, and we can’t have that happen.”

Ag Manufacturers Weigh In on Weight of Sanctions

The Agricultural Manufacturers of Canada (AMC), based in Winnipeg, Man., is a national trade organization representing over 275 agricultural equipment manufacturers and supporting companies. Its mission: to foster and promote the growth and development of the agricultural equipment manufacturing industry in Canada. In a note to members, AMC President Donna Boyd, who has held that role for 5 years, writes, “I have the privilege of working on behalf of a vibrant, healthy, innovative industry that makes significant contributions to rural as well as urban economies across Canada.” So she seemed a perfect candidate with whom to connect. I’m glad I did.

Not surprisingly, AMC warned of significant economic harm to Canada’s agricultural manufacturing sector if the United States moves forward with tariffs. What follows is the official AMC statement issued in a Nov. 27 news release, “Government of Canada must act to protect Canadian manufacturing jobs,” in its entirety.

“U.S. President-elect Donald Trump’s plan to implement a 25 percent tariff on Canadian goods entering the United States threatens to disrupt decades of strong economic cooperation, risks thousands of jobs and creates significant barriers to trade and innovation on both sides of the border. The Canadian government must do everything it can to maintain this important trading relationship and protect our manufacturing jobs, says Agricultural Manufacturers of Canada President Donna Boyd.

AMC members export more than $4.2 billion of agricultural implements exported to 148 countries around the world, with 80 percent of these exports going to agricultural customers in the United States.

‘We are deeply concerned about President-elect Donald Trump’s recent announcement,’ Boyd said. ‘If followed through, it will have significant negative repercussions on both our countries.’

The proposed tariffs would severely disrupt North American agricultural supply chains, lead to higher costs for U.S. farmers who rely on Canadian-made equipment and jeopardize thousands of Canadian manufacturing and agricultural jobs.

The agricultural manufacturing sector employs more than 25,000 workers — from engineering, finance, and high-tech workers, to those developing innovative IP and manufacturers creating products that reduce carbon and feed our families and the world. With more than half of AMC’s members operating in communities of 10,000 people or less, our sector is the largest employer in many regions across the country.

‘Canada and the United States have always enjoyed a strong two-way trade relationship, and it is important that Canada show political leadership to protect this relationship,’ Boyd said. ‘It is more important than ever that Canadians work together to protect Canadian jobs.’

AMC members export more than $4.2 billion of agricultural implements exported to 148 countries around the world. The growing international demand for premium Canadian agricultural machinery underscores the critical contribution of AMC members in advancing technological frontiers. Their unwavering dedication to excellence enables Canadian agricultural manufacturing to continually set new benchmarks on the global stage.”

Stay tuned as we continue to monitor and cover this impactful issue.

Meanwhile, if you’re working in or with Canadian ag equipment manufacturing or farming, what say you?