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 US 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 they are not receiving special treatment and are operating under ordinary rules that apply to farmers. The subsidies provided by the Canadian government are directed at farmers generally, not specifically at 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 Dutch method, a modern farming technique used by many Canadian mushroom producers, gives growers large, reliable yields quickly and reduces pest pressures.

The US Department of Commerce has yet to decide on whether to hit Canadian mushrooms with anti-dumping duties. A final determination may not come for months. Macleod is hopeful that the final determination will be that Canadian-grown mushrooms do not harm US producers.

Original reporting: El Paso News (HLL/CB) — read the source article.