President Trump's harsh criticism of Canada’s dairy tariffs continues, following a misstatement regarding the Canada-U.S.-Mexico Agreement (CUSMA). Central to the tension is Canada's supply management system designed to stabilize dairy prices, which U.S. farmers argue restricts their access to the Canadian market. Trump's administration pushed for the elimination of this system during NAFTA negotiations. Both the U.S. and New Zealand have targeted Canada’s dairy import controls through trade dispute processes, as American farmers rely on federal subsidies to navigate market volatility raised by international competition.
In his recent comments, President Donald Trump inaccurately claimed that Canada imposes tariffs up to 200 percent on dairy, a mischaracterization of CUSMA's provisions.
The contentious nature of dairy trade between the U.S. and Canada stems from Canada's supply management system, which seeks to stabilize prices by controlling market access.
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