Trump Rails Against Canada’s ‘High’ Dairy Tariffs, Hints at Reciprocal Measures

News Desk
3 minute read

Trump News Highlights

  • Trump blasts Canada’s 250% dairy tariffs as unfair, threatens reciprocal U.S. tariffs.
  • Tariffs on Canadian dairy and lumber could start as early as Monday, Trump warns.
  • Move follows Canada’s $155 billion retaliation plan against U.S. trade policies.

Trump Rails Against Canada’s ‘High’ Dairy Tariffs, Hints at Reciprocal Measures

President Donald Trump unleashed a fresh salvo in his trade war with Canada on Friday, railing against the country’s “tremendously high” dairy tariffs and signaling imminent reciprocal measures. Speaking from the Oval Office, Trump accused Canada of “ripping us off for years” with its roughly 250% tariff on U.S. dairy exports, vowing to match those rates unless Canada relents. 

The threat, which could extend to lumber, marks the latest escalation in a tit-for-tat battle that’s rattled North American markets and strained U.S.-Canada relations just weeks into Trump’s second term.

A Fiery Critique of Canadian Trade

Trump’s remarks zeroed in on Canada’s supply management system, which shields its dairy farmers with steep tariffs—averaging 249% per the World Trade Organization—far exceeding the U.S.’s 17% average dairy duties. “They’re taking advantage of our farmers, charging 250% on dairy—it’s not fair, never has been,” Trump told reporters, promising dollar-for-dollar retaliation. 

He suggested action could come “as early as today” or by “Monday or Tuesday,” also flagging Canada’s lumber tariffs as a target. The comments follow his March 6 reprieve for U.S. automakers, a 30-day tariff exemption he touted as a lifeline, but dairy and lumber now face his crosshairs.

The outburst aligns with Trump’s broader “America First” push, which saw 25% tariffs hit Canadian goods on March 4, only partially paused after industry outcry. Canada’s Prime Minister Justin Trudeau, calling the initial levies “very dumb,” has countered with $155 billion in retaliatory tariffs on U.S. exports like orange juice and coffee, effective immediately, with more to follow in 21 days. 

Trump’s reciprocal tariff threat—potentially a 250% levy on Canadian dairy—could dwarf those measures, risking a full-blown trade crisis.

Economic Stakes and Allied Pushback

The dairy spat threatens U.S. farmers seeking Canada’s market, where America already runs a $700 million dairy trade surplus despite quotas, per 2023 USDA data. Canada’s system, prized in Quebec, limits imports to protect domestic producers, a sore point Trump has hammered since 2018. 

Lumber, already saddled with U.S. anti-dumping duties of 14.5%, could see further hikes after Trump’s March 1 national security probe into global imports. Economists warn reciprocal tariffs could spike U.S. consumer prices—milk by 50 cents a gallon, lumber adding $5,000 to home costs—contradicting Trump’s anti-inflation pledges.

Canada’s Trudeau fired back, urging Trump to see tariffs as a tax on Americans, while Ontario Premier Doug Ford doubled down, axing a $100M Starlink deal and threatening U.S. power cuts. “They need to feel the pain,” Ford said, a sentiment Trudeau echoed in vowing a prolonged fight. Stocks slid Friday—the Dow fell 300 points—reflecting fears of a destabilized USMCA trade pact, up for 2026 review but now fraying under Trump’s tariff barrage.

A Trade War Teeters on the Edge

Trump’s hinted measures, if enacted, would bypass Congress via his emergency powers, a tactic he’s wielded since 2018 steel tariffs. “We’ll charge the same thing—it’s a big deal,” he insisted, brushing off market jitters as “predictability isn’t the goal.” With Canada defiant and allies like Mexico (set to unveil its response Sunday) in tow, the reciprocal tariff threat looms as a test of Trump’s resolve—and the resilience of North America’s economic ties. As April 2 looms—when broader reciprocal tariffs kick in—the dairy dispute could be the spark that ignites a wider conflagration.

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