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New Canadian dairy tariffs highlight long-running USMCA market access dispute

An ag economist says the Trump administration’s recently announced tariffs on Canadian dairy products could help expand market access for U.S. dairy exports. 

Ian Sheldon with Ohio State University says President Trump is trying to level the playing field for U.S. dairy producers.

“The U.S. believes it has been discriminated against in terms of the amount of dairy quotas or cheese exports to Canada,” he says. “The short-term objective will be to see if the United States can get Canada to visit issues that need to be revised or revisited in the USMCA.”

He tells Brownfield dairy import restrictions have been a sticking point.

“It makes it difficult for U.S. processors to access the market,” he says. “It looks like the quota is being unfairly allocated to Canadian importers. They’re using it as a negotiating tactic, but I don’t think the issue is going to go away.”

Sheldon says a reduction in dairy quotas and a refined trade agreement could help support future export growth between the two countries.

President Trump’s 50 percent tariffs targeting Canadian dairy imports are set to take effect on August 19th.

AUDIO: Ian Sheldon, Ohio State University