The U.S. is moving to slap more tariffs on fresh Canadian-grown mushrooms in response to a U.S. Department of Commerce probe that an industry representative said did not prove Canadian growers are selling unfairly.
A fact sheet provided by Mushrooms Canada said the U.S. department's preliminary anti-dumping duty determination, released Tuesday, proposes an 8.26 per cent tariff on most fresh Canadian mushrooms.
Three companies are being hit with individual tariff levels. Champ's Fresh Farms Inc. is facing a 8.71 duty, Highline Produce Limited is braced for a 11.80 tariff and Farmers' Fresh Mushrooms, Inc. is looking at a two per cent tariff.
Mushrooms Canada CEO Ryan Koeslag said the tariff rates show the idiosyncrasies of U.S. anti-dumping law, rather than the commercial realities of the North American mushroom market.
"U.S. anti-dumping law contains technical calculation rules that can produce a finding of 'dumping' even when business sense and market realities tell a different story," Koeslag said in a news release. "A straightforward comparison of true average U.S. prices to true average Canadian prices would show no dumping at all."
The U.S. hit Canada's mushroom sector with separate 2.84 per cent countervailing duties in May. That Department of Commerce investigation alleged Canadian mushroom producers received unfair government subsidies, something the industry denies.
Countervailing and anti-dumping duties are separate from U.S. President Donald Trump's massive tariff agenda. Trump has used different tools to hit countries around the world with tariffs and Canada is also being hammered by his sector-specific duties on things like steel, aluminum, automobiles and cabinetry.
The Commerce Department launched the anti-dumping investigation in January after receiving a complaint from the U.S.-based Fresh Mushrooms Fair Trade Coalition, which was pushing for tariffs of up to 44 per cent on Canadian imports.
Koeslag said the investigation shows that the "original dumping allegations were overstated."
The case is far from over and Koeslag said "Mushrooms Canada will continue to participate fully in the process and demonstrate that the allegations against our sector are unfounded."
Picture Courtesy: AP Photo/Jose Luis Magana
