ARLINGTON, Va. (RFD News) — Trade tensions with Canada are raising concerns for the U.S. dairy industry following the announcement of retaliatory tariffs on American goods.
Shawna Morris with the National Milk Producers Federation and U.S. Dairy Export Council joined us on Wednesday’s Market Day Report to discuss Canada’s dairy commitments under the U.S.-Mexico-Canada Agreement and the growing trade dispute.
In her conversation with RFD News, Morris said the tensions follow years of concerns over Canada’s dairy market access commitments under USMCA. She said Canada opened tariff-rate quotas but granted much of that access to its own processors, putting U.S. exporters in the position of selling to competitors.
Morris said the industry hopes the pressure will bring Canada back to the negotiating table rather than lead to escalating tariffs. Canada’s retaliatory measures include several U.S. dairy products, creating additional concerns for an industry that relies heavily on exports.
Canada is the second-largest export market for U.S. dairy, with about 18% of total U.S. milk production exported globally last year.
The impact of Canada’s retaliatory tariffs could also extend to farm machinery and equipment.
Shaun Haney, host of RealAg Radio, also joined Wednesday’s Market Day Report to discuss the broader impact on agriculture.
Haney said Canada spared whole tractors and combines but included certain equipment and replacement items, including combine headers, mowers and livestock trailers. With U.S. shipments crossing before September 8 exempt, he expects businesses to front-load orders ahead of the deadline.
Haney said agricultural trade is still moving between the two countries, but warned that further retaliation involving commodities such as beef and pork could ultimately affect farmgate prices.
