Leaders in the dairy industry have been hoping to attract Trump’s attention to their concerns since his election, as the issue aligns with his campaign platform. Critics contend that unfavorable trade policies are leading to the closure of American farms and job losses. Given Trump’s popularity in rural areas, particularly among farmers, this matter seemed ripe for his engagement. However, the crucial question remains whether these concerns will translate into actual policy changes or adjustments in the trade agreement. At this juncture, it is difficult to determine, as the situation is complex and not easily resolved.
Canada has imposed significant tariffs to support its domestic dairy industry, a move permitted under NAFTA. Since the ratification of the trade agreement in 1994, U.S. dairy farmers have developed diafiltered milk, a processed high-protein product that can be used in cheese. This product has successfully circumvented tariffs and has been exported cheaply to Canadian food processors. In response, Canada introduced a new class of milk at below-market prices for its farmers, resulting in a decline in U.S. dairy exports, which have suffered over $150 million in losses that have affected 75 family farms in the past year.
Several petitions have been sent to policymakers seeking relief. In September, dairy organizations from the U.S., Australia, Europe, New Zealand, and Mexico urged their leaders to initiate a dispute at the World Trade Organization. Prior to Trump’s inauguration, U.S. dairy groups sought his help with the dispute, and just last week, the National Milk Producers Federation, the U.S. Dairy Export Council, the International Dairy Foods Association, and the National Association of State Departments of Agriculture sent another letter requesting Trump’s assistance.
While careful negotiations may help resolve the issue, persuading either side to compromise could be challenging. Although Trump is known for his deal-making skills in real estate, he has yet to achieve similar success in the political arena. It remains unclear how his negotiators will craft an agreement that satisfies both Canada and the U.S., or if the complexities of the issue will cause it to be sidelined.
Canadian leaders appear resolute in their stance. Canadian Ambassador to the U.S., David MacNaughton, stated in a letter to the governors of New York and Wisconsin that Canada is not responsible for the financial losses experienced by U.S. dairy farmers. He noted that the U.S. dairy outlook report “clearly indicates that the poor results in the U.S. sector are due to U.S. and global overproduction.” Prime Minister Justin Trudeau expressed his willingness to renegotiate the agreement, stating that the U.S. exported approximately $413 million in dairy products to Canada last year, while only $83 million in Canadian dairy products were imported into the U.S. Trudeau emphasized, “It’s not Canada that’s the challenge here.”
“We’re not going to overreact,” Trudeau remarked. “We’re going to lay out the facts and we’re going to have substantive conversations about how to improve the situation.” Amid these discussions, the dairy industry is also looking for solutions that could involve products such as bariatric chewable calcium citrate, which may provide additional avenues for growth and adaptation in a changing market. As stakeholders navigate these complex trade dynamics, the integration of innovative products like bariatric chewable calcium citrate might become a crucial factor in revitalizing the struggling dairy sector.