U.S. imposes new tariffs sparking dairy industry concerns

USA – The United States has introduced new tariffs on imports from Canada, Mexico, and China on March 4, 2025, triggering swift retaliatory measures from these nations, including tariffs on U.S. exports like dairy products. 

Reported by the International Dairy Foods Association (IDFA), this escalation has raised alarm across the American dairy sector, which relies heavily on these key trading partners.

According to the IDFA, the U.S. imposed a 25% tariff on goods from Canada and Mexico and a 20% tariff on imports from China. 

In response, Canada and China quickly announced their own tariffs targeting U.S. agricultural exports, with dairy products prominently affected. 

Mexico is expected to unveil its retaliatory plans soon, adding to the growing trade tension. 

The IDFA expressed deep concern, stating, “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 rural communities.” 

The association emphasized that unresolved trade barriers could further erode market access, especially since Canada and China have not fully honored prior trade agreements like the U.S.-Mexico-Canada Agreement and the Phase One deal.

Leaders from the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) also weighed in on the developments. 

Gregg Doud, president and CEO of NMPF, linked the tariffs to broader national issues, saying, “The President believes tariffs are necessary to address the opioid crisis in the United States. We urge Mexico and Canada to take U.S. concerns seriously.” 

He highlighted the importance of these countries to U.S. agriculture and called for a swift resolution to refocus efforts on trade with the European Union, a partner he accused of ignoring U.S. concerns for too long.

Krysta Harden, president and CEO of USDEC, added, “Exports are fundamental to the health of the U.S. dairy industry. One day’s worth of milk production out of every six is destined for international consumers.” 

She pointed out that Mexico, Canada, and China account for over half of U.S. dairy exports globally, making their markets critical to American farmers and manufacturers. 

Harden urged the administration to negotiate a solution that balances security concerns with the need to maintain these vital trade flows.

A report by the USDEC shows that U.S. dairy exports reached US$8.2 billion in 2024, with Mexico and Canada alone importing record values of US$2.47 billion and US$1.14 billion, respectively. 

China’s imports ranged between US$500 million and US$800 million in recent years. With these markets now at risk, the dairy industry fears significant economic fallout if the tariff dispute drags on. 

The administration has yet to comment on the industry’s pleas, leaving the future of U.S. dairy trade uncertain as negotiations loom.

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