U.S. President Donald Trump has threatened a 35% blanket tariff on Canada starting August 1, specifically targeting Canada's dairy industry and its supply management system, which he claims imposes "extraordinary tariffs" up to 400%. While Canadian dairy producers are accustomed to Trump's rhetoric, they remain concerned about potential concessions in trade negotiations. Canada's supply management system controls imports and production limits for dairy, poultry, and eggs, protecting its industry from heavily subsidized U.S. dairy. Experts suggest some concessions might be necessary despite Ottawa's firm stance against negotiating supply management.
'It's like Groundhog Day': Canadian dairy producers are used to Trump calling them out, but worry remains
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TL;DR: Key points with love ❤️U.S. President Donald Trump has threatened a 35% blanket tariff on Canada starting August 1, specifically targeting Canada's dairy industry and its supply management system, which he claims imposes "extraordinary tariffs" up to 400%. While Canadian dairy producers are accustomed to Trump's rhetoric, they remain concerned about potential concessions in trade negotiations. Canada's supply management system controls imports and production limits for dairy, poultry, and eggs, protecting its industry from heavily subsidized U.S. dairy. Experts suggest some concessions might be necessary despite Ottawa's firm stance against negotiating supply management.
Trending- 1 Last night: Donald Trump posts letter on Truth Social threatening tariffs
- 2 Late June: Canadian government signed a bill into law to protect supply management
- 3 August 1: Proposed start date for 35% blanket tariff
- Worry among Canadian dairy producers about supply management concessions
- Potential for increased tariffs on Canadian goods
- Ongoing trade tensions between Canada and the U.S.
What: Donald Trump threatened new tariffs on Canada, specifically targeting the dairy industry and its supply management system.
When: Last night (Trump's letter), August 1 (proposed tariff start), 2025 (for butter/cheddar levy rates), late June (bill signed into law).
Where: Canada, United States.
Why: Trump's long-standing issue with Canada's supply management system, which he views as unfair to U.S. dairy farmers.
How: Trump issued a threat via a letter posted on Truth Social. Canada's supply management system uses import controls and production limits to support its dairy industry.