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Editorial Cartoon by Graeme MacKay, Wednesday March 12, 2025 Canada's dairy exports to U.S. stay tariff-free President Donald Trump's grievances against Canada's dairy sector focus on high tariffs and restrictive quota practices that limit U.S. market access. Canada imposes tariffs of 200–300% on U.S. dairy products to protect its supply management system, which Trump criticizes as unfair. Despite the USMCA granting the U.S. limited market access, disputes over Canada's tariff-rate quota allocations persist, leading to trade tensions. Trump's administration, with key figures like USTR Jamieson Greer, has vowed to challenge these policies, labeling them as protectionist. This friction is part of broader U.S.-Canada trade disputes, with Trump threatening to renegotiate USMCA and linking dairy issues to unrelated grievances. Canada, meanwhile, defends its system as crucial for its rural economy and refuses to renegotiate under economic pressure. Canada's dairy exports to the United States are relatively limited, staying below the established thresholds that would trigger tariffs under existing trade agreements. This is largely due to Canada's supply management system, which focuses on fulfilling domestic demand and maintaining stable prices to support Canadian dairy farmers. As a result, the volume of dairy products exported to the U.S. is modest, allowing Canada to avoid the application of tariffs on these exports. This system helps ensure that the domestic market remains stable and protected, while the majority of dairy trade flow tends to favor U.S. exports to Canada. This editorial cartoon was originally published Thursday April 20, 2017 Canada, dairy, America First, NAFTA, free trade, milk, cow, farm, bull, diplomacy, supply management