How Trump’s ‘Liberation Day’ impacts global dairy markets
Source: dairynews.today
The latest trade tariffs imposed by the US, targeting key global dairy-producing regions, are set to reshape international dairy markets, impacting the European Union, China, Australia, New Zealand, and India.
On April 5, 2025, the United States will implement a 10% tariff on all imports, sparing only Canada and Mexico, which are already subject to tariffs.
Donald Trump has announced the introduction of tariffs on imports from 185 countries, including Kazakhstan.
Some trade partners face higher rates, with the European Union (EU) being affected by a 20% tariff.
The US Dairy Export Council highlights that such measures could reduce US cheese consumption by 21% over 10 years, costing American farmers $59 billion.
Despite these challenges, the European Dairy Association notes EU cheese exports to the US account for less than 2% of US domestic consumption, arguing against the tariffs' competitive impact.
Other regions are also grappling with the tariffs: India faces a 27% levy, with its dairy sector particularly exposed due to longstanding protectionism.
New Zealand and Australia are subject to the flat 10% rate but enjoy some resilience due to strong trade agreement networks.
China, facing a 54% total levy on its goods to the US, warns of retaliation, highlighting trade policy's ongoing uncertainty.
The US dairy sector, exporting $8 billion annually, fears these tariffs could undermine its growth and market access, calling for smart trade policies over punitive measures.
Trump stated that both "friends and enemies of the U.S." had exploited the American economy for decades, but that with the new reciprocal tariffs, that era is over.
According to Trump, these measures will usher in a “golden age” for the U.S. economy, bringing jobs and factories back to America.
He also claimed that the U.S. government will direct "trillions of dollars" from the tariffs toward tax cuts and debt reduction and that these changes will happen "very quickly."
"For years, hardworking American citizens were forced to stand by as other countries grew rich and powerful—largely at our expense. But now, it is our turn to prosper, using trillions of dollars to cut taxes and pay down the national debt," Trump said.
Reaction on global markets
The European Dairy Association (EDA) has condemned the US government's decision to impose tariffs on a broad range of EU goods, calling the move “unjustified.”
Alexander Anton, EDA secretary general, said EU dairy exports, particularly cheese, account for less than 2% of total US consumption and serve a niche market rather than competing directly with American dairy products.
“These cheeses offer choice and excellence to US consumers,” Anton said. “They do not compete with American dairy products.”
The Trump administration’s so-called ‘reciprocal tariffs’ threaten both European exporters and American businesses, the EDA warned, restricting access to premium dairy products and potentially driving up prices in the US market.
Anton noted that the US and EU share the world’s largest bilateral trade and investment relationship, with an overall trade balance that is “essentially in equilibrium.”
“A trade dispute between the US and the EU is clearly a lose-lose scenario,” he said.
"The tariffs imposed by the administration of President Donald Trump on European products may have a significant impact on the Polish dairy sector. Although Poland is not directly mentioned in the context of these tariffs, as part of the EU, it may feel their effects in several key areas", said Agnieszka Maliszewska, Dairy sector expert in Poland, Director Polish Chamber of Milk, 1st vice President COGECA.
In addition to tariffs on EU products, the U.S. has introduced 25% tariffs on steel and aluminum imports, including supplies from the European Union, reminiscent of the situation in 2018. Under the new policy, imports from the EU are subject to an additional 20% tariff based on arbitrary calculations, with the EU imposing 39%.
In response, the European Union is considering retaliatory measures on American agri-food products, which could further escalate the conflict. According to the European Commission, the U.S. is the second-largest export market for EU agri-food products.
This makes Polish dairy products less price-competitive in the U.S. market, potentially leading to a decline in exports. The EU is also considering the introduction of counter-tariffs on American agri-food products. It is expected that trade tensions will affect the stability of export markets for Polish dairy producers, said Agnieszka Maliszewska.
Given this situation, the Polish dairy sector must closely monitor developments and be prepared for potential changes in trade policy that could impact dairy exports.
Looking at what happened in the Chinese market, after China initiated legal proceedings against the EU dairy sector, leading to a sharp collapse in exports to China, the dairy sector is now facing a very serious challenge.
Irish butter brand Kerrygold and the broader dairy industry are under pressure as new U.S. tariffs threaten exports, raising fears of deeper disruption if the European Union retaliates. The Irish Farmers' Association (IFA) warned that the tariffs would leave Ireland at a competitive disadvantage against rivals like New Zealand and the UK, which face lower levies. Industry leaders caution that EU countermeasures could escalate the dispute, compounding challenges for dairy exporters.
Simon Tucker, the co-op’s group director of global external affairs, states that the effects of these tariffs are still being assessed, but it is clear they will pose challenges for companies like Fonterra.
Fonterra, a major supplier to the US beverage market, including the top brand Premier Protein, anticipates that these tariffs will increase costs throughout the supply chain. As Tucker explains, "Obviously, we always want to avoid any increases in tariffs or other trade barriers across all the markets we operate in. Tariffs and other trade barriers create additional costs across the supply chain, which are ultimately borne by local consumers.”
Market experts are predicting significant recessionary trends in global economies. Dairynews.today is closely monitoring the developments.
Donald Trump has announced the introduction of tariffs on imports from 185 countries, including Kazakhstan.
Some trade partners face higher rates, with the European Union (EU) being affected by a 20% tariff.
The US Dairy Export Council highlights that such measures could reduce US cheese consumption by 21% over 10 years, costing American farmers $59 billion.
Despite these challenges, the European Dairy Association notes EU cheese exports to the US account for less than 2% of US domestic consumption, arguing against the tariffs' competitive impact.
Other regions are also grappling with the tariffs: India faces a 27% levy, with its dairy sector particularly exposed due to longstanding protectionism.
New Zealand and Australia are subject to the flat 10% rate but enjoy some resilience due to strong trade agreement networks.
China, facing a 54% total levy on its goods to the US, warns of retaliation, highlighting trade policy's ongoing uncertainty.
The US dairy sector, exporting $8 billion annually, fears these tariffs could undermine its growth and market access, calling for smart trade policies over punitive measures.
Trump stated that both "friends and enemies of the U.S." had exploited the American economy for decades, but that with the new reciprocal tariffs, that era is over.
According to Trump, these measures will usher in a “golden age” for the U.S. economy, bringing jobs and factories back to America.
He also claimed that the U.S. government will direct "trillions of dollars" from the tariffs toward tax cuts and debt reduction and that these changes will happen "very quickly."
"For years, hardworking American citizens were forced to stand by as other countries grew rich and powerful—largely at our expense. But now, it is our turn to prosper, using trillions of dollars to cut taxes and pay down the national debt," Trump said.
Reaction on global markets
The European Dairy Association (EDA) has condemned the US government's decision to impose tariffs on a broad range of EU goods, calling the move “unjustified.”
Alexander Anton, EDA secretary general, said EU dairy exports, particularly cheese, account for less than 2% of total US consumption and serve a niche market rather than competing directly with American dairy products.
“These cheeses offer choice and excellence to US consumers,” Anton said. “They do not compete with American dairy products.”
The Trump administration’s so-called ‘reciprocal tariffs’ threaten both European exporters and American businesses, the EDA warned, restricting access to premium dairy products and potentially driving up prices in the US market.
Anton noted that the US and EU share the world’s largest bilateral trade and investment relationship, with an overall trade balance that is “essentially in equilibrium.”
“A trade dispute between the US and the EU is clearly a lose-lose scenario,” he said.
"The tariffs imposed by the administration of President Donald Trump on European products may have a significant impact on the Polish dairy sector. Although Poland is not directly mentioned in the context of these tariffs, as part of the EU, it may feel their effects in several key areas", said Agnieszka Maliszewska, Dairy sector expert in Poland, Director Polish Chamber of Milk, 1st vice President COGECA.
In addition to tariffs on EU products, the U.S. has introduced 25% tariffs on steel and aluminum imports, including supplies from the European Union, reminiscent of the situation in 2018. Under the new policy, imports from the EU are subject to an additional 20% tariff based on arbitrary calculations, with the EU imposing 39%.
In response, the European Union is considering retaliatory measures on American agri-food products, which could further escalate the conflict. According to the European Commission, the U.S. is the second-largest export market for EU agri-food products.
This makes Polish dairy products less price-competitive in the U.S. market, potentially leading to a decline in exports. The EU is also considering the introduction of counter-tariffs on American agri-food products. It is expected that trade tensions will affect the stability of export markets for Polish dairy producers, said Agnieszka Maliszewska.
Given this situation, the Polish dairy sector must closely monitor developments and be prepared for potential changes in trade policy that could impact dairy exports.
Looking at what happened in the Chinese market, after China initiated legal proceedings against the EU dairy sector, leading to a sharp collapse in exports to China, the dairy sector is now facing a very serious challenge.
Irish butter brand Kerrygold and the broader dairy industry are under pressure as new U.S. tariffs threaten exports, raising fears of deeper disruption if the European Union retaliates. The Irish Farmers' Association (IFA) warned that the tariffs would leave Ireland at a competitive disadvantage against rivals like New Zealand and the UK, which face lower levies. Industry leaders caution that EU countermeasures could escalate the dispute, compounding challenges for dairy exporters.
Simon Tucker, the co-op’s group director of global external affairs, states that the effects of these tariffs are still being assessed, but it is clear they will pose challenges for companies like Fonterra.
Fonterra, a major supplier to the US beverage market, including the top brand Premier Protein, anticipates that these tariffs will increase costs throughout the supply chain. As Tucker explains, "Obviously, we always want to avoid any increases in tariffs or other trade barriers across all the markets we operate in. Tariffs and other trade barriers create additional costs across the supply chain, which are ultimately borne by local consumers.”
Market experts are predicting significant recessionary trends in global economies. Dairynews.today is closely monitoring the developments.
