While Trump wants to make Canada the 51st US state, it’s clear that the Canadian dairy industry is also on the president’s mind.
The US is said to have long desired to expand access to the tightly controlled Canadian dairy market. At the same time, Canada has strongly defended its supply management system. Trump linked his threat to impose 25% tariffs on Canada and Mexico to claims about fentanyl and migrants. And, when it comes to dairy, the new Trump administration is making it clear that Canada will face a familiar fight.
Dairy trade might be small – the US exported US$1billion worth of dairy to Canada in 2023, while the total amount of goods shipped across its northern border was about US$354 billion – but the industry has a reputation as a long-time, cross-border irritant.
Canadian dairy farmers hope the current trade imbalance in dairy, which greatly favours the US, will be a saviour. Canada exported about $300m in dairy products to the US in 2023.
