President Donald Trump is threatening to impose new tariffs on Canadian dairy products, claiming that Canada has been unfairly shutting out American farmers.
Trump insists Canada’s “tremendously high tariff of 250%” makes it “impossible for us to sell dairy products into Canada,” and warns the US could respond with reciprocal measures.
“This isn’t fair,” said Trump in the Oval Office.
“They’re ripping us off for years on tariffs. Nobody ever talks about that. Two-fifty, that is a massive tariff on our farmers, and we can’t let it continue.”
Trump argued that Canada’s policies force US producers to compete on an uneven playing field.
Trump also took aim at Canadian environmental regulations, calling them “environmental nonsense” used to limit imports of American lumber.
Trump claimed his administration is waiving similar restrictions “on an emergency basis” to push back against Canada.
Despite not offering specifics, Trump promised to act quickly, saying he could start imposing tariffs “as early as today or maybe Monday or Tuesday,” unless Canada drops its trade barriers.
Canada’s dairy sector has a national framework known as “supply management” protecting its dairy industry.
Established in the early 1970s, it is designed to balance how much milk is produced with how much people consume, preventing surpluses and shortages.
The three main pillars are production control, pricing mechanisms, and import control, which work together to ensure stability and fair returns for farmers, all while keeping prices steady for consumers.
Large imports above set levels can be subject to high tariffs.
This measure helps maintain consistent incomes for domestic farmers, as it prevents a flood of cheaper milk products from overwhelming the Canadian market.
Supporters of supply management say it reduces volatility by matching supply to demand and encourages high standards in dairy production.
Critics, including Trump, argue that it restricts competition and drives up prices for consumers while locking out foreign producers.
Trump’s pledge to launch reciprocal tariffs has raised concerns on both sides of the border.
Analysts warn that escalating trade tensions could harm a wide array of industries, not just dairy and lumber.
For now, Canadian farmers and US producers are watching closely, bracing for the next move in a trade dispute that shows no signs of cooling down.