Trump Accuses Canada of 'Cheating' as Trade War Heats Up
President Donald Trump has accused Canada of "cheating" American dairy farmers amid escalating trade tensions between the U.S. and its northern neighbor.
The president’s recent move to impose hefty tariffs on foreign goods has sparked a trade war on several fronts. This week, Trump announced 25% tariffs on products from Canada and Mexico, along with a new 10% tariff on Chinese goods.
In response, Canadian, Mexican, and Chinese officials pledged to introduce reciprocal tariffs of their own. However, on Thursday, Trump temporarily held off on tariffs for Mexico and Canada on products that meet the U.S.-Mexico-Canada Agreement (USMCA) standards, delaying them until April 2.
On Friday night, Trump took to Truth Social to criticize Canada’s trade practices, specifically regarding dairy products.
"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%."
He went on to say, "These sky-high Tariffs are part of Canada's unfair, long-standing policy to shield domestic producers from foreign competition, especially in Agriculture. Our Great U.S. Dairy Farmers deserve fair treatment from Canada. Enjoy it while you can!"
This isn’t the first time Trump has criticized Canadian dairy tariffs. During his first term, he raised similar concerns about what he views as unfair trade practices.
The high tariffs cited by Trump are part of Canada’s long-standing supply management system, which aims to protect its domestic dairy industry. The USMCA, signed by Trump, Canadian Prime Minister Justin Trudeau, and then-Mexican President Enrique Peña Nieto in 2018, increased the quota of U.S. dairy products that could enter Canada without tariffs.
While tariffs of up to nearly 300% can technically apply to U.S. dairy exports exceeding this quota, the Brookings Institution notes that American dairy is rarely sold to Canada beyond these limits, making such extreme tariffs more theoretical than practical.
During an Oval Office news conference on Friday, Trump warned that if Canada did not lower its tariffs, the U.S. would respond with matching tariffs: "They'll be met with the exact same tariff unless they drop it... It's not fair. It never has been fair, and they've treated our farmers badly."
Meanwhile, Trudeau indicated that Canada would maintain its retaliatory tariffs until the U.S. lifts its own tariffs on Canadian goods. "I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future," he said Thursday.
With the U.S. still planning to implement additional 25% tariffs on Canadian and Mexican products next month, the trade dispute shows no sign of resolution, and the high tariffs on American dairy outside the USMCA quota are unlikely to change.
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