Regardless, down the drain or not depending on your source, let’s take a step back:
U.S. President Donald Trump correctly
noted Friday, as he has before, that Canada has
tariffs above 200 per cent on dairy products imported from the U.S.. But Trump again failed to mention a critical fact.
Those high tariffs kick in only after the U.S. has hit a
certain Trump-negotiated quantity of tariff-free dairy sales to Canada each year – and as the US dairy industry
acknowledges, the U.S. is not hitting its allowed zero-tariff maximum in any category of dairy product.
In many categories, notably
including milk, the U.S. is not even at half of the zero-tariff maximum….so…
is this a lot to do about very little or nothing at all?
“In practice, these tariffs are not actually paid by anyone,”
Al Mussell, an expert on Canadian agricultural trade, said in an email Friday.
Trump also made a claim that is simply false. He told reporters Friday that the situation with Canadian dairy tariffs was “well taken care of” at the time his first presidency ended, “but under Biden, they just kept raising it.”
In reality, Canada did not raise its dairy tariffs under then-U.S. President Joe Biden, as official Canadian documents show and industry groups on both sides of the border confirmed to CNN. The tariffs Trump was denouncing Friday were left in place by the United States-Mexico-Canada Agreement, or USMCA,
which Trump negotiated, signed in 2018 and has since
touted “
the best trade deal ever made.”
The White House did not respond to CNN’s Friday request for comment.
U.S. President Donald Trump correctly noted Friday, as he has before, that Canada has tariffs above 200% on dairy products imported from the U.S.. But Trump again failed to mention a critical fact.
apple.news
Trump
vowed Friday to retaliate against Canada with new US dairy tariffs in the coming days, but Commerce Secretary Howard Lutnick
said Sunday on NBC that the president’s response to Canada on dairy will actually come on April 2, the day Trump has
said he will impose reciprocal tariffs on countries around the world.
Under Trump’s USMCA, Canada guaranteed it wouldn’t apply any tariffs to
specific amounts of US imports per year in
14 dairy categories, such as milk, cream, cheese, ice cream, butter and cream powder, and yogurt and buttermilk. These
new U.S.-specific quotas, which Canada agreed to increase over time, gave American farmers and companies
more access to the Canadian market.
But the USMCA didn’t get Canada to lower the tariffs that apply to imports above the quota thresholds. And
contrary to Trump‘s Friday claim, those tariffs didn’t spike under Biden…but…but facts and stuff, etc..
Those Canadian tariff levels are eye-popping, and they certainly function as major trade barriers above the zero-tariff quota maximums. (Mussell noted: “The U.S. has
precisely this same system for its dairy market?? PRECISELY THE SAME. Let that sink in.
It has tariff-rate quotas, and beyond that volume, very stiff tariffs and almost no imports.”) But the
International Dairy Foods Association, which represents the American dairy manufacturing and marketing industry, pointed out Friday that the U.S. is not at Canada’s zero-tariff maximum in any category.
The charge of unfair milk commerce by this country – mounting in intensity over recent days - has become arguably the defining issue of hard–fought trade talks
nationalpost.com
“It’s the pot calling the kettle black,” says agricultural economist Al Mussell about the complaints leveled by American officials from President Donald Trump on down.
BOTH countries deserve to be criticized for the trade barriers they already have, and for the U.S. to complain about Canada doing exactly the same thing the U.S. does is beyond hypocritical.
But when it comes to imports, BOTH countries assign “tariff rate quotas” – allowing a certain quantity of dairy to be imported that in the case of NAFTA countries is free of any levy. And for imports above the quota limits, BOTH set high duties.
Granted, Canada’s overage tariff is 300% & America’s is 30%, but neither country exceeds these overages & neither countries citizens pay this, so…????…so let’s split it in the middle, call it an overage tariff fee of 135% for both American & Canadian dairy products (that nobody will pay), and call it a day.
Or is this as relevant (or irrelevant) as fentanyl in this whole goat, rodeo pissing match?