Two American agriculture economists say trade in dairy products is working as intended under the free trade deal United States President Donald Trump negotiated with Canada and Mexico.
United States exports of butter to Canada increased from $86 million in 2021 to $213 million last year and cheese from $104 million to $168 million.
Total dairy sales to Canada increased from $525 to $877 million.
But Trump calls the Canadian dairy industry unfair and said he wants tariffs reduced. He has added 25 per cent to the tariffs the U.S. charges on dairy products from Canada.
It’s part of his 25 per cent tariff on everything, currently on pause until April 2, and 25 per cent in effect on Canadian steel and aluminum.
The U.S. was able to increase dairy sales to Canada because the trade deal lowered Canadian tariffs on a specified volume of imports. The U.S. subsequently filed a complaint, which it won, on how Canada distributed permits to access the lower-tariff volume of dairy products.
Their paper shows annual dairy sales figures since the deal came into effect.
- 2021 U.S. dairy exports to Canada — $524.9 milion
- 2022 — $718 million
- 2023 — $757 million
- 2024 — $877 million
