US mushroom growers have accused Canadian growers 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. About two dozen Canadian mushroom producers are facing a 2.84% tariff on the mushrooms they sell in the US. However, Canadian growers argue that the subsidies they receive are not specific to the mushroom industry and are instead directed at farmers generally.

According to Lewis Macleod, CEO of South Mill Champs Mushrooms, the trade complaint is not about subsidy programs, but about companies that have invested in new infrastructure and those that haven’t. Macleod explained that most Canadian-grown mushrooms are grown using the Dutch method, which gives growers large, reliable yields quickly, while also reducing pest pressures and creating mushrooms that consumers prefer.

The dispute has sparked concerns about the impact on the US mushroom market and the potential for higher prices for consumers. The US Department of Commerce has yet to decide on whether to hit Canadian mushrooms with anti-dumping duties, a type of tariff applied to imported goods that are being sold at lower prices, as a way to protect domestic producers.

Original reporting: KRDO (Colorado Springs metro) — read the source article.