American farmers are bracing for the impact of new tariffs exchanged between the U.S. and Canada on both their supply costs and their sales.
President Donald Trump's administration placed new 50% tariffs on around $20 billion worth of Canadian goods after trade talks between the two countries fell apart in late August. Canada came back with their own list of equivalent import taxes on American goods that go into effect on Tuesday.
Amid a barrage of social media posts criticizing the United States' northern neighbor, Trump claimed Americans "don't need Canada."
But Jayash Paudel, associate professor of economics at the University of Oklahoma, said trade data tells a different story — especially for farmers and agriculture-related manufacturers.
He pointed out that Canada bought $28 billion in U.S. agricultural goods last year, making it the second largest export market behind Mexico.
"It's not really about winning or losing here," Paudel said of the latest tariff exchange. "I think ultimately the heat is going to be felt by Americans."
Dairy products are a central part of both tariff lists, including everything from finished cheeses to ingredients like whey.
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