Canada’s temporary canned-vegetable safeguard currently leaves US suppliers untouched, but a new trade tribunal recommendation could expose imports from Canada’s largest trading partner to surtaxes as high as 50% once shipments exceed a proposed annual quota.
The Canadian International Trade Tribunal concluded its safeguard inquiry September 9, finding increased canned-vegetable imports were a principal cause of serious injury to Canadian producers.
Finance Minister François-Philippe Champagne said the government is reviewing the report while the existing provisional measure remains in effect.
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Canada imposed a provisional 10% surtax on certain canned corn, peas, green and wax beans, mixed vegetables, several types of beans, and chickpeas beginning June 19. The measure can remain in place for up to 200 days. However, US, Mexican, Chilean, Israeli, and certain developing-country goods are exempt.
The tribunal’s final recommendation could change that. The Wall Street Journal, citing the tribunal ruling, reported that the CITT recommended a three-year tariff-rate quota under which roughly 30 million pounds of canned vegetables could enter Canada duty-free annually. Imports above the quota would face surtaxes ranging from 40% to 50%.
The proposed measure would cover imports from certain countries including the US, China, and EU members.
The approximately 30 million-pound threshold corresponds with Canada’s 2024 import volume, according to the report.
The tribunal found total canned-vegetable imports rose 28% in 2025, with U.S. shipments accounting for a substantial share of the increase. It concluded that US imports contributed importantly to the domestic industry’s serious injury, according to the Journal.
That finding is significant under the CUSMA, which generally requires a country imposing a global safeguard to exclude another member unless its imports represent a substantial share of total imports and contribute importantly to the injury.
Nortera Foods, identified by the tribunal as Canada’s largest canned-food processor by a significant margin, reported lost or reduced sales and pressure on gross margins as imports increased, according to the Journal. The company also warned that Canadian plants could close.
