US mushroom growers have accused Canadian producers of benefiting from unfair government subsidies, sparking a trade dispute that could reshape the cross-border market. The Fresh Mushrooms Fair Trade Coalition, a group of US mushroom producers, filed a petition with the US Department of Commerce in September 2025, arguing that Canadian producers are exporting fresh mushrooms to the US at prices below fair value and benefiting from countervailable subsidies provided by the Canadian government.

Trade Dispute

The US Department of Commerce has agreed with the petitioners and applied duties on some Canadian mushroom producers. The preliminary decision concluded that Canadian governments do unfairly subsidize mushroom production. About two dozen Canadian mushroom producers are facing a 2.84% tariff on the mushrooms they sell in the US.

However, Canadian mushroom growers argue that the subsidies they receive are not specific to the mushroom industry and are instead directed at farmers generally. The province of British Columbia offers funding to help farms cover the cost of adopting new technologies, but the programs are not targeted at bolstering the mushroom industry.

Impact on the Industry

The trade dispute could have significant implications for the mushroom industry. Lewis Macleod, CEO of South Mill Champs Mushrooms, believes that the trade complaint is not about subsidy programs, but about companies that have invested in new infrastructure and those that haven’t. The use of modern mushroom growing techniques, such as the Dutch method, gives growers large, reliable yields quickly and reduces pest pressures.

The dispute has also highlighted the differences in mushroom growing techniques between the US and Canada. While most Canadian-grown mushrooms are grown using the Dutch method, the majority of mushrooms in the US are grown on wood shelves, an older technique that isn’t as efficient.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.