Canadian dairy farmers told Al Jazeera that President Trump’s 50% tariff stalled U.S. sales, while Ottawa’s response threatens higher costs on both sides.
A 50% U.S. tariff on $20 billion in Canadian goods took effect August 22. Canadian dairy sales to the United States then largely stopped, Al Jazeera reported.
The tariff pressure now reaches farms through processors that can no longer compete in the American market. It follows Trump’s 50% tariff decision after another breakdown in talks.
Casey Pruim owns a dairy farm in Abbotsford, British Columbia. He also chairs the British Columbia Dairy Association, which represents about 400 provincial farmers.
Pruim’s 330 cows are milked three times daily. His farm sends 28,000 liters of raw milk into British Columbia’s distribution system every second day.
Canadian farmers sell their milk through a provincial marketing system, Pruim explained. That system sends milk to processors based on demand, leaving farmers exposed when a processor loses foreign buyers.
“If the processor who’s exporting some of his product to the United States can no longer sell into that market,” Pruim said, the 50% tariff prices that processor out. That loss then works its way back to the farm.
Dairy production cannot stop on short notice. Nearly 14,000 liters of milk are stored each day in Pruim’s refrigerated unit, which is kept at 2.8 degrees Celsius.
“Cows aren’t like a tap; you can’t just turn them on or off,” Pruim said. That physical reality gives farmers little room while processors search for buyers.
President Donald Trump has argued that Canada’s supply-management system restricts American dairy exports. He said Canada had been “ripping off the United States of America for years” through “ridiculously high tariffs.”
The trade figures show how much business already flows north. Canada imported 1.355 billion Canadian dollars in U.S. dairy products during 2025, while exporting 308.7 million Canadian dollars south.
In 2020, Canada imported 647.4 million Canadian dollars in American dairy products. Its exports to the United States totaled 241.3 million Canadian dollars that year.
Those numbers help explain Washington’s frustration with Canadian market barriers. They also show why the collapse of the trade talks carries risks for producers on both sides.
David Wiens, president of Dairy Farmers of Canada, called the tariffs “completely unwarranted.” He warned of effects across “the supply chain, not only in Canada but in the US as well.”
Still, the size of the immediate damage remains unclear. No figures show how many farms or processors lost sales, which products stopped moving, or how much trade stalled after August 22.
Canada answered on September 8 with tariffs covering $20 billion in American products. Its package includes 50% levies on U.S. milk, cream and whey, plus 25% duties on many cheeses.
Prime Minister Mark Carney promised to match Washington “dollar for dollar.” The Canadian retaliation widened the dispute rather than shielding consumers from it.
Oxford Economics warned that Canada’s tariffs would help some industries but hurt most. It said the duties would raise costs for producers and consumers while weakening growth across the country.
The dispute is set to reach beyond tariffs. AP reported that Washington would ban certain Canadian dairy products, motorcycles and most alcoholic drinks beginning September 29.
Canadian products will also be excluded from many long-term U.S. government contracts. More than 70% of Canada’s exports still go to the United States, leaving Ottawa with few quick alternatives.
Carney said Canada would speed up investment, infrastructure work and trade diversification. His government is exploring closer European Union ties, an effort that has become another point of friction with Trump.
“It’s about ensuring that no country can hold us hostage,” Carney said. He argued that Canada must be able to “live how we want to live.”
But finding distant buyers does not solve an immediate dairy surplus. Ottawa’s Trade Commissioner Service is advising companies to review trade-agreement compliance, seek relief and contact officials about other markets.
Bryan Yu, chief economist at Central 1 credit union, warned that producers would face “pain in the near term.” A 50% tariff is too large for many companies to absorb.
“You really can’t quickly adjust to a 50 percent tariff,” Yu said. Many Canadian producers lack the profit margins needed to remain competitive after such a sharp increase.
That leaves dairy farmers with hard options if processors keep cutting orders. Milk could be dumped, and farms could eventually reduce their herds if lost sales cannot be replaced.
Dylan Kruger, public affairs director at BC Dairy, said “considerable uncertainty” remains. It is not clear whether products once sold in the United States can find buyers elsewhere.
Yu said global markets may offer openings for chilled food products. Yet distance, timing and available buyers make replacing the American market difficult in the short term.
He predicted that Washington and Ottawa could reach an agreement in the following months. Until then, he expects “higher prices, weaker economic activity and deeper mistrust.”
The United States remains Canada’s dominant customer, even as Ottawa talks about diversification. Retaliation may satisfy political pressure, but it also taxes goods moving into Canada.
Washington, meanwhile, is expanding its pressure from tariffs to purchasing policy. Trump’s Canadian procurement order adds another source of leverage over a government heavily tied to American commerce.
Canadian farmers did not design that dependence, yet they now face its consequences. Their milk keeps coming while processors, trade officials and political leaders search for the next move.
Trade policy should defend American producers and demand fair access. Ottawa’s answer cannot be to spread the bill to more families and call that resilience.