Canada is mulling tariff rate quotas on canned vegetable imports after an inquiry found a rise in shipments were a cause of “serious injury” to domestic producers.
The Canadian International Trade Tribunal (CITT) launched its inquiry in March to examine whether imports of canned and frozen vegetables were harming the country’s food-processing industry.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The tribunal found no basis for action against frozen vegetable imports.
However, the CITT reached a different conclusion on canned vegetables. It found that imports from non-exempt countries had increased in volume and under conditions that made them a principal cause of injury to the domestic industry.
The tribunal recommended “tariff rate quotas” for canned vegetable imports from subject countries, with exemptions for Mexico, Chile, Colombia, Korea, Panama, Peru, Israel, other beneficiaries of the Canada-Israel Free Trade Agreement, and countries eligible for General Preferential Tariff treatment.
The US is among the suppliers that would remain within the scope of the proposed measure.
Canada imposed a 10% surtax on imported canned vegetables in June.
Canada’s finance minister François-Philippe Champagne said: “The government will review it in detail with a view to determine appropriate actions, in accordance with international trade rules, and announce its decision in due course.
“While the government reviews the CITT report, the 10% surtax on global imports of canned vegetables announced on 10 June 2026, remains in place for its maximum duration of 200 days or until it is replaced by final safeguard measures.”
According to the ruling, total Canadian imports of canned vegetables increased by 28% in 2025 from the previous year.
The tribunal said import volumes were “a principal cause of serious injury to the domestic industry.”
It also found that US shipments grew more quickly than total canned vegetable imports during 2025.
“The growth rate of US imports in 2025 from the prior year was “appreciably greater than the growth rate of total imports from all sources over the same period. Considering the above, US imports must be deemed to contribute importantly to serious injury.”
Trade tensions between the US and Canada have intensified over the past 18 months, culminating in retaliatory tariffs and import restrictions.
In July, the US refused to renew the USMCA trade agreement it has with Canada and Mexico.
Weeks later, the US announced plans to impose 50% tariffs on a range of Canadian goods, including alcohol and dairy products, but delayed their implementation in August.
After trade talks broke down later that month, Washington proceeded with the tariffs.
Canada responded at the end of August with “dollar-for-dollar, rate-for-rate” counter-tariffs covering C$27.6bn ($19.9bn) of US imports, including dairy and seafood.
The dispute escalated further when President Trump blocked Canadian alcohol and dairy imports.
