What Canada’s 300% Tariff on Dairy Imports Actually Means
- ZISK
- Mar 28
- 1 min read
In the growing dispute between the US and Canada over trade, US President Donald Trump has singled out for particular complaint steep levies Canada has on the books for imported dairy products, calling them “anti-American farmer.”
In theory, US milk, butter and cheese could face duties ranging from 200% to 300%. In practice, close to 99.9% of US dairy exports to Canada enter the country duty-free, according to the Canadian government. Still, Trump has demanded an end to the high tariffs.
How does Canada tax dairy imports?
Foreign dairy producers can sell to the Canadian market — facing little or no tariffs — up to a certain threshold, after which cost-prohibitive levies kick in. Canada’s government justifies the setup as part of its so-called supply management system. Begun in the 1970s, the system is designed to prevent surpluses or shortages of dairy supplies and to ensure that prices are high enough to make farms profitable. Under the system, local farmers face a production quota and if they go over the limit can be required to pour milk down the drain.
By Randy Thanthong-Knight
March 27, 2025
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