Fact-checking Trump’s claims that Canada has 300% tariffs on U.S. dairy
Source: dairynews.today
A detailed examination of U.S. President Donald Trump's assertions about Canadian tariffs on American dairy imports.
U.S. President Donald Trump has repeatedly claimed that Canada imposes a 250 to 300 percent tariff on U.S. dairy products. However, these claims are misleading according to trade rules and data.
High tariffs do exist but only apply to products exceeding Canada’s tariff rate quotas (TRQs), which the U.S. dairy exports do not reach, facing no tariffs. "It’s a false claim," says Bruce Muirhead, a dairy policy expert. He explains that while Canada has high tariff rates for excess products, they have never been met. Under the Canada-United States-Mexico Agreement (CUSMA), U.S. access to the Canadian dairy market was increased, raising quota thresholds.
Despite high over-quota tariffs aimed at protecting domestic markets, Canada remains a major importer of U.S. dairy, purchasing over US$1.1 billion worth in 2024, marking an 82% increase over the past decade. Muirhead highlights the structural difference in dairy production scales, emphasizing the U.S.'s desire for market access due to excessive milk production. Despite political rhetoric, dairy constitutes a minor fraction of U.S.-Canada trade, representing just 0.1%. Trump’s focus on the issue is seen as culturally driven, reflecting the significant role of dairy in the U.S.
High tariffs do exist but only apply to products exceeding Canada’s tariff rate quotas (TRQs), which the U.S. dairy exports do not reach, facing no tariffs. "It’s a false claim," says Bruce Muirhead, a dairy policy expert. He explains that while Canada has high tariff rates for excess products, they have never been met. Under the Canada-United States-Mexico Agreement (CUSMA), U.S. access to the Canadian dairy market was increased, raising quota thresholds.
Despite high over-quota tariffs aimed at protecting domestic markets, Canada remains a major importer of U.S. dairy, purchasing over US$1.1 billion worth in 2024, marking an 82% increase over the past decade. Muirhead highlights the structural difference in dairy production scales, emphasizing the U.S.'s desire for market access due to excessive milk production. Despite political rhetoric, dairy constitutes a minor fraction of U.S.-Canada trade, representing just 0.1%. Trump’s focus on the issue is seen as culturally driven, reflecting the significant role of dairy in the U.S.
