The U.S. dairy industry is applauding the Trump administration’s latest effort to challenge Canadian dairy trade practices and defend market access promised under the U.S.-Mexico-Canada Agreement, or USMCA. The White House announced this week it will impose a 50% tariff on dairy imports from Canada, invoking Section 338 of the Tariff Act of 1930. Administration officials say the action is aimed at holding Canada accountable for what they describe as discriminatory trade practices that continue to limit opportunities for U.S. dairy exporters.
The National Milk Producers Federation and the U.S. Dairy Export Council both voiced strong support for the move. USDEC President and CEO Krysta Harden says Canada has repeatedly misused its tariff rate quota system, preventing U.S. dairy exporters from fully benefiting from the market access commitment. She says it’s time for Canada to address those concerns and other unresolved dairy trade issues.
NMPF President and CEO Gregg Doud says the administration’s action sends a clear message that Canada’s dairy trade practices will no longer be tolerated. He argues Canada policies continue to discriminate against U.S. dairy farmers by effectively blocking access that was negotiated as part of the trade agreement. Under USMCA, Canada agreed to provide additional duty-free access for U.S. dairy products through tariff rate quotas.
However, dairy industry groups say Canada’s administration of those quotas has resulted in chronic underuse and has denied U.S. exporters the market opportunities they were promised. Industry leaders are urging the administration to make resolution of those issues a priority during the ongoing USMCA review.
Audio Reporting by Elizabeth Sanders for Southeast AgNet.