In a recent article by CNN, it was highlighted that President Donald Trump’s claims regarding Canadian dairy tariffs were not entirely accurate. While Trump pointed out Canada’s tariffs exceeding 200% on US dairy products, he failed to mention crucial details. The high tariffs only apply after the US surpasses negotiated tariff-free dairy sales quantities to Canada, a target that the US dairy industry has not met in any category of dairy products.

Contrary to Trump’s assertion, Canada did not raise its dairy tariffs under President Joe Biden. The tariffs in question were established by the United States-Mexico-Canada Agreement (USMCA), a deal negotiated by Trump and touted as a significant achievement. Under the USMCA, Canada agreed to specific quotas for US dairy imports in various categories, providing American farmers more access to the Canadian market. However, the agreement did not reduce tariffs above the quota thresholds, and these tariffs did not increase under Biden’s administration.

The article also highlighted the ongoing debate between the US and Canada regarding dairy trade barriers and market access. While Trump vowed retaliation with new US dairy tariffs against Canada, the reality of the situation complicates his claims. Despite the complexities of the issue, it is evident that Canada’s protectionist policies for its dairy industry stand out as an exception rather than the norm in international trade relations.

Overall, the article sheds light on the intricacies of US-Canada dairy trade relations, debunking misconceptions and emphasizing the importance of understanding the nuances of international trade agreements and tariffs for informed decision-making.