U.S. Dairy Urges Swift Resolution to Tariff Escalation with Canada, Mexico and China

The United States levied new tariffs on imports from Canada, Mexico and China last night, prompting China and Canada to announce new tariffs on U.S. exports including dairy products. The International Dairy Foods Association (IDFA) released the following statement in response to the tariffs:

"The U.S. dairy industry urges the Trump Administration to quickly resolve the ongoing tariff concerns with Canada, Mexico, and China—America’s top agricultural trading partners. A prolonged tariff war will deliver significant economic damage to American dairy farmers, processors, and the rural communities, and therefore we urge the Administration to resolve these tariffs as soon as possible.  While we recognize that China and Canada have yet to fulfill the promises made in the Phase One and U.S.-Mexico-Canada Agreements, respectively, prolonged tariffs will further diminish market access. We strongly urge the Administration to both resolve U.S. dairy’s trade barriers with these markets and the newly announced tariffs.” 

Background

The U.S. dairy industry, which supports more than 3.2 million jobs in the United States and pumps almost $800 billion into the U.S. economy, has invested more than $8 billion in new processing capacity that will come online in the next few years. The industry exports roughly 18% of the milk it produces, and it relies on increased trade access to open new markets and increase exports.