Canada exports $293 million worth of dairy products to the United States
President Donald Trump announced to reporters that his administration is imposing tariffs on Canadian dairy products and lumber as early as Friday (March 7, 2025), escalating a growing trade conflict between the two neighboring nations.
Speaking from the Oval Office, Trump expressed frustration with what he described as Canada's "unfair" tariffs on U.S. goods, particularly dairy and lumber, which have long been sources of tension in U.S.-Canada trade relations.
President Trump specifically called out Canada's high tariffs on U.S. dairy products, claiming they exceed 200 percent.
“They make it impossible for us to sell lumber or dairy products into Canada. But our numbers are a tiny fraction of that. Almost nonexistent,” Trump said. “They’ll be met with the exact same tariff unless they drop it. And that’s what reciprocal means. And we may do it as early as today, or we’ll wait till Monday or Tuesday, but that’s what we’re going to do. We’re going to charge the same thing. It’s not fair.”
In 2023, Canada exported $293.3 million worth of dairy products to the United States, while the U.S. sent $1.09 billion worth of dairy to Canada. However, Trump has repeatedly emphasized that the imbalance in tariffs is detrimental to American farmers and producers, particularly in the dairy and lumber sectors.
Canada’s supply management system for dairy has been in place for more than 50 years, regulates the domestic dairy market to balance supply and demand while ensuring Canadian dairy farmers can weather global market volatility.
In 2023, Canada exported approximately $488 million worth of dairy to countries outside the United States.
Canada, which has consistently defended its tariff system as vital for protecting its domestic industries, has not yet responded to Trump’s latest threat.
When the US tariffs were first announced in February, David Wiens, President of Dairy Farmers of Canada, issued the following statement: "Like all Canadians, our nation’s dairy farmers are deeply concerned about the far-reaching impacts that the high tariffs imposed by the United States on Canadian products will have on consumers, industries, and economies on both sides of the border. We stand with our federal government and all parties, showing determination and commitment to swiftly resolving this impasse.
Feeding Canada is what we do, and our dairy farmers are always ready to do their part in ensuring food security for all Canadians."