OTTAWA — The Canadian government announced today that it will impose an import duty on corn from the United States, the latest salvo in a growing trade war between the world's two biggest trading partners.
The Department of Revenue said the duty will be $1.05 (U.S.) a bushel. Corn is currently selling at around $1.75 a bushel on U.S. commodities markets.
The department said it has found evidence that U.S. farm subsidies are injurious to Canadian farmers.
The department said in a statement that after investigating a large number of U.S. federal and state agricultural programs, it found five programs that "confer a subsidy on grain corn."
In Washington, Agriculture Secretary Richard E. Lyng said he is "astonished and dismayed" over the Canadian action.
No Increase in Exports
Lyng said the U.S. farm program does not fit the "classic definition" of export subsidies. He said subsidies offer lower prices to export customers than to domestic buyers. The U.S. program reduces prices to all customers.