President Donald Trump has accused Canada of “cheating” on tariffs as the U.S. and its northern neighbor continue to grapple with an emerging trade war.
Newsweek reached out for comment to the office of Canadian Prime Minister Justin Trudeau via email on Friday night.
Why It Matters
Trump’s plan to impose stiff new tariffs on foreign countries has ignited a trade war on multiple fronts. The president announced earlier this week that he was moving forward with 25 percent tariffs for products from Canada and Mexico and a new 10 percent tariff on Chinese goods.
Canadian, Mexican and Chinese officials have promised to match Trump’s tariffs with their own reciprocal tariffs. Trump backtracked to some degree on Thursday, pausing tariffs for Mexico and Canada on products that comply with the U.S.-Mexico-Canada Agreement (USMCA) until April 2.
NICHOLAS KAMM/AFP via Getty Images
What To Know
In a post to Truth Social on Friday night, Trump accused Canada of “cheating” American dairy farmers under the terms of the USMCA.
“Canada is cheating the United States Farmers on USMCA,” Trump wrote. “In 2024, Canada retained Tariffs on various U.S. Goods, particularly in protected sectors like Dairy that are operated under a supply management system. Some examples of Canadian Tariffs on U.S. Dairy outside of the limited quota include: Milk: Up to 243% …. Butter: Up to 298% …. Cheese: Up to 245%.”
“These sky high Tariffs are part of Canada’s unfair, long-standing policy to shield domestic producers from foreign competition, especially in Agriculture,” he continued. “Our Great U.S. Dairy Farmers deserve fair treatment from Canada. Enjoy it while you can!”
Trump’s post on Friday was far from the first time that he has complained about Canadian tariffs on American dairy products, with the president airing similar grievances during his first term.
The tariffs to which Trump refers are part of a long-standing policy to protect the Canadian dairy industry. The USMCA, which Trump in 2018 signed alongside Trudeau and Mexico’s then-President Enrique Peña Nieto, significantly increased a quota of U.S. dairy products that are allowed to be sold to Canada without the tariffs.
The inflated dairy tariffs can in theory be charged on American dairy sold to Canada that exceeds the quota. But the “sky high” tariffs in practice are never charged because American dairy is not exported to Canada outside of the quota limits, according to the Brookings Institution think tank.
What People Are Saying
Trump, threatening to impose inflated U.S. tariffs on Canadian dairy during an Oval Office news conference on Friday: “They’ll be met with the exact same tariff unless they drop it … That’s what we’re gonna do, we’re going to charge the same thing. It’s not fair. It never has been fair, and they’ve treated our farmers badly.”
Trudeau, in remarks to reporters on Thursday: “I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future. We will not be backing down from our response tariffs until such a time as the unjustified American tariffs on Canadian goods are lifted.”
What Happens Next
The high Canadian tariffs on American dairy products outside of the USMCA quota are unlikely to disappear soon, regardless of whether Trump follows through on his threat to impose reciprocal tariffs. The North American trade war is also likely to continue, with the additional 25 percent U.S. tariffs on Canada and Mexico still set to go into effect next month.