New U.S. tariffs on Canadian goods took effect Aug. 22, with a 50% tariff applying to $27.6 billion of specified Canadian imports. The tariffs do not apply broadly to all Canadian goods, as exemptions and other tariff structures remain in place.
For Illinois farmers, U.S. exports of corn, ethanol and distillers grains to Canada are exempt from the new tariffs. Canadian fertilizer imports to the United States also are exempt.
Canada is set to retaliate beginning Sept. 8 with tariffs of 15%, 25% and 50% on $27.6 billion of U.S. imports. The tariffs will affect sectors including agricultural equipment, steel, dairy, appliances, pulp and paper, and electronics.
Canada is a critical market for U.S. agriculture. In 2025, the United States exported $28 billion in agricultural products to Canada, including $1.7 billion in ethanol and $325 million in corn. Canada is the No. 1 export market for U.S. ethanol.
For Illinois corn farmers, the larger concern is the potential impact of the tariffs on demand. Corn prices and farm margins are already under pressure, making strong and reliable markets particularly important to producers.
Canada and Mexico are both essential trading partners for U.S. agriculture. Maintaining a predictable trade relationship, including commitments under the U.S.-Mexico-Canada Agreement, remains important for farmers, the agriculture industry and the broader agricultural economy.
Source: IL Corn, "New Tariffs on Canada Raise Concerns for Corn Farmers"