In a recent press briefing, President Donald Trump reiterated claims regarding Canada’s dairy tariffs, suggesting they impose heavy burdens on US farmers. He noted that imports of dairy products from the US to Canada face tariffs exceeding 200%. However, Trump’s omission of crucial context around these tariffs prompts closer scrutiny.
The tariffs Trump criticizes only apply after the US has fulfilled a specific volume, which is defined in the United States-Mexico-Canada Agreement (USMCA), under a quota system designed to benefit American dairy exporters. Unfortunately, as it stands, the American dairy industry is not meeting this pre-agreed amount of tariff-free exports, limiting access to the Canadian market.
Agricultural policy expert Al Mussell highlighted that these tariffs are rarely triggered since the US export values do not reach the quotas necessary for the tariffs to take effect. He stated in an email, “In practice, these tariffs are not actually paid by anyone.”
Moreover, Trump inaccurately stated that these tariff concerns were addressed by the end of his first term, asserting that President Biden has increased tariffs. However, factual verification reveals that Canada’s dairy tariffs have remained unchanged, according to numerous industry resources and Canadian government data. The USMCA, which Trump himself negotiated and enacted in 2018, maintained these tariff levels. The claim that tariffs increased under Biden is not supported by data from trade records or Canadian tariff lists.
During his recent comments, Trump also suggested retaliatory tariffs would soon be imposed on Canada, further complicating the economic relationship. These developments come as Commerce Secretary Howard Lutnick indicated that any official response would be announced on April 2, 2025, a timeline Trump had specified for implementing reciprocal tariffs against various countries.
While Trump successfully negotiated some dairy concessions from Canada in the USMCA, which allows limited duty-free dairy imports across 14 categories including milk and cheese, he failed to alter the steep tariffs that apply once imports exceed those limits. These tariffs function as significant barriers, and while the US dairy industry is unhappy about them, it struggles to utilize the tariff-free quotas due to perceived trade barriers imposed by Canada.
Looking at the bigger picture, Canada represents a vital market for US agricultural exports. Data from the US Department of Agriculture shows that Canada is the second-largest buyer of US agricultural products, with purchases totaling approximately $28.4 billion in 2024, firmly cementing its position as a crucial trade partner for American farmers. However, Canadian policies on dairy, eggs, and poultry create exceptions to this general trend of low tariffs and open access between the two nations.
In summary, Trump’s public statements regarding Canadian dairy tariffs exhibit significant inaccuracies and misunderstandings about both the USMCA and the current state of trade between the US and Canada. As the debate continues over tariffs and market access, clarity and accuracy in discussing such critical issues remain paramount for informed public discourse.