The United States and Canada Clash Over Dairy Trade as Argentina Watches
The United States has taken a tougher position in its dairy trade dispute with Canada. From September 29, several Canadian product categories will be excluded from the US market, including whey-protein concentrates, modified whey, liquid whey and different forms of dried whey.
Canada, meanwhile, applies a 50% tariff to various categories imported from the United States. The measures affect products that are also part of Argentina’s export mix, including whey, milk powder, cheeses and butter.
Argentina’s external sales
Between January and July 2026, Argentina exported dairy products equivalent to 1.835bn litres of milk, generating $987m in revenue. The result was a record for that period, with export volume up 20% from a year earlier.
Foreign sales accounted for about 29% of Argentina’s total milk production during those seven months. Whole milk powder, whey, mozzarella, semi-hard cheeses and butter were among the products exported. Brazil, Algeria, Chile and China were the leading destinations by volume.
Possible changes in trade flows
The dispute does not directly involve Argentina. However, the exclusion of some Canadian goods from the US market could lead suppliers to seek buyers elsewhere, while Canada may need to redirect whey products that can no longer enter the United States.
The source identifies two developments to monitor: where Canada seeks to sell the affected products and which suppliers US buyers may approach if they need to replace those imports. It does not establish that Canadian or US products will compete with Argentine exports, or that the dispute will immediately change local prices.
Whey is a particular focus because it is both among the Canadian products covered by the measures and an important item in Argentina’s external dairy trade. With a significant share of its milk production sold abroad, Argentina is exposed to changes in the destinations and availability of dairy products on international markets.
