The National Milk Producers Federation and US Dairy Export Council have praised the Trump administration for maintaining pressure on Canada in a trade dispute over dairy market access, whilst Canadian Prime Minister Mark Carney has suspended negotiations and vowed retaliatory tariffs.
The US imposed a 50 per cent tariff on a range of Canadian goods, including dairy products, over the weekend, after trade negotiations between the two countries collapsed on Friday evening. That is according to trade publication Just Food.
The tariff covers milk, cream, dried whey and whey protein concentrates, among other products. The dispute stems from a long-running disagreement over Canada’s compliance with its commitments under the USMCA trade agreement, which was intended to secure US dairy producers improved access to the Canadian market through tariff-rate quotas.
Dairy bodies praise pressure on Canada
In a joint statement, the National Milk Producers Federation (NMPF) and US Dairy Export Council (USDEC) thanked the Trump administration for maintaining pressure on Canada.
“We appreciate the Administration’s persistence in standing up for American dairy producers and exporters who have waited far too long for Canada to live up to its promises,” says Krysta Harden, president and CEO of USDEC, according to the joint statement. She adds that Canada has repeatedly had the opportunity to fix what the organisations describe as unfair market access practices.
Gregg Doud, president and CEO of NMPF, stresses according to the statement that it is time for Canada to stop looking for workarounds and instead come to the table in good faith to resolve the outstanding USMCA dairy implementation issues.
According to the two organisations, Canada has systematically underfilled the tariff-rate quotas it committed to under USMCA, whilst also exploiting loopholes to sidestep the agreement’s rules on dairy protein exports.
Canada responds with retaliatory tariffs
Canadian Prime Minister Mark Carney announced on Saturday that Canada is suspending trade negotiations with the US and will match the US tariffs “dollar for dollar”. According to Carney, the US put forward new demands in the final days of talks that he described as uneconomic and unfair to Canada.
Carney says Canada’s retaliatory tariffs will be concentrated in sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, and will come into force from 8 September. Precise details of the tariff rates are expected to be published in the coming days.
The breakdown in talks comes shortly after the US had delayed introducing the tariffs by three days, following Trump’s announcement that the two countries had reached a deal.
The US spirits and wine industry has also been hit by the new tariffs and has called for the two countries to reach a swift resolution, warning that the tariffs also affect US hospitality businesses reliant on the Canadian market.
By Maja Løvstrup
Illustration: Colourbox
