7 March 2025

2 minute read

By: Global Ag Media

North America

The United States levied new tariffs on imports from Canada, Mexico and China last night, prompting China and Canada to announce new tariffs on US exports including dairy products. The International Dairy Foods Association (IDFA) released the following statement in response to the tariffs:

"The US dairy industry urges the Trump Administration to quickly resolve the ongoing tariff concerns with Canada, Mexico, and China—America’s top agricultural trading partners. A prolonged tariff war will deliver significant economic damage to American dairy farmers, processors, and the rural communities, and therefore we urge the Administration to resolve these tariffs as soon as possible. While we recognise that China and Canada have yet to fulfil the promises made in the Phase One and US-Mexico-Canada Agreements, respectively, prolonged tariffs will further diminish market access. We strongly urge the Administration to both resolve US dairy’s trade barriers with these markets and the newly announced tariffs.”

The US dairy industry, which supports more than 3.2 million jobs in the United States and pumps almost $800 billion into the US economy, has invested more than $8 billion in new processing capacity that will come online in the next few years. 

The industry exports roughly 18% of the milk it produces, and it relies on increased trade access to open new markets and increase exports. 

After being a net importer of dairy products a decade ago, the United States now exports $8 billion worth of dairy products to 145 countries. 

US dairy exports topped $8.2 billion in 2024, the industry’s second-highest level ever. Mexico and Canada—US dairy’s top two global trading partners representing more than 40% of US dairy exports—each imported record values of dairy in 2024 at $2.47 billion and $1.14 billion respectively. 

China in recent years has imported between $500 million and $800 million worth of US dairy in recent years.