Feb 4, 2025Prince Edward Island Potato Board keeping close eye on tariff situation
The Prince Edward Island Potato Board says it is closely monitoring tariffs U.S. President Donald Trump has threatened to impose on Canada.
On Feb. 3, Trump paused an expected 25% tariff on Canadian goods for 30 days after a phone call with Canadian Prime Minister Justin Trudeau. Trudeau said in a statement and a post on social platform X that Canada is spending $1.3 billion on “reinforcing the border,” including appointing a “Fentanyl Czar” and spending $200 million on a new intelligence program targeting organized crime and fentanyl.
Trump has said the tariffs are necessary to stop the flow of drugs and people into the U.S. He also signed executive orders on Feb. 1 to impose 25% tariffs on Mexico.
Those tariffs were also paused for 30 days after a deal was struck with Mexican President Claudia Sheinbaum Pardo for beefed-up border enforcement.
A 10% tariff on Chinese goods went into effect Feb. 4. China responded by levying a 15% tax on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks from the U.S.. The tariffs are to take effect Feb. 10, according to a CNN report which contained a link to the Chinese announcement.
In a Feb. 3 statement, the Prince Edward Island (PEI) Potato Board said it was “actively consulting with our producers, dealers and exporters to understand how these tariffs will impact their business as well as endeavoring to find answers to their questions. The PEI Potato Board remains actively engaged with both our provincial and federal government representatives, as well as our national potato produce organizations, on behalf of our industry.”
More than 40% of fresh PEI potatoes are shipped to the U.S., including the majority of the island’s spuds processed into french fries. About 50% of the Island’s total crop grown ends up in U.S. markets, according to the board.
“These unfair and punitive tariffs will have a negative impact on Prince Edward Island potato farms and farm businesses and will raise the cost of food for our American neighbours,” the board’s statement read. “Prince Edward Island has been supplying the US with high quality potatoes for generations; unfortunately, these completely unnecessary trade actions brought by President Trump endangers that long-standing relationship.”
The potato industry, including 175 family farms and their workers, is worth $1.35 billion to the Prince Edward Island economy, according to the board. The statement urged Canadians to seek out Canadian potatoes for purchase.
“A prolonged trade battle will only serve to damage our industry, which provides nutritious food to both Canadians and Americans, while driving up the price of food for Americans,” the board said.
PEI potatoes have been a subject of concern after detected potato wart closed the U.S. border to fresh potatoes from the island in November 2021. The border reopened in April 2022 amid ongoing mitigation efforts.
