Trump's 50% tariff halts Canadian dairy sales to US
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US President Donald Trump's 50 percent tariff on Canadian dairy products took effect on August 22, halting most cross-border sales. Canadian dairy farmers in British Columbia face uncertainty as processors lose access to the US market. The tariff is part of $20bn in levies on Canadian goods.
Key Facts
- The 50 percent tariff on Canadian dairy products took effect on August 22 as part of $20bn in US levies on Canadian goods.
- Casey Pruim's farm in Abbotsford, British Columbia, produces 28,000 litres of raw milk every second day from 330 cows.
- Pruim chairs the British Columbia Dairy Association, which represents about 400 dairy farmers across the province.
- David Wiens, president of the Dairy Farmers of Canada, called the tariffs 'completely unwarranted' and said they would affect the supply chain in both Canada and the US.
Tariff Impact on Dairy Exports
US sales of Canadian dairy products have largely come to a standstill since the 50 percent tariff took effect on August 22. The tariff is part of $20bn in US levies on Canadian goods imposed by President Donald Trump. Dylan Kruger, director of public affairs at BC Dairy, said there is still considerable uncertainty around the impact of the US tariffs. Kruger said it was too early to know whether milk no longer sold to the US could be sold elsewhere to mitigate financial losses.
Farm-Level Consequences
Casey Pruim, owner of Prime Acres Ltd dairy farm in Abbotsford, said farmers would be forced to dump milk if processor demand is squeezed. In the worst-case scenario, Pruim said the herd has to be cut because cows cannot be turned on or off like a tap. Pruim's farm has 330 cows milked three times a day, producing 28,000 litres of raw milk every second day. Canadian farmers sell into the provincial milk-marketing system, which distributes milk to processors according to demand, including for products exported to the US.
Supply Management System
Dairy trade between Canada and the US has largely operated under the free trade agreement known as CUSMA in Canada. Canada manages the supply of dairy, poultry and eggs through a national agricultural policy known as supply management. David Wiens, president of the Dairy Farmers of Canada, told CBC News that the tariffs are completely unwarranted. Wiens said the tariffs would affect the supply chain not only in Canada but in the US as well.
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