The United States has introduced new tariffs on imports from Canada, Mexico, and China, prompting swift retaliation from China and Canada. These countermeasures include tariffs on U.S. exports, particularly dairy products, raising concerns within the American dairy industry.
Industry Urges Quick Resolution
Dairy industry leaders are calling on the U.S. government to resolve these trade disputes as soon as possible. A prolonged tariff conflict could have serious economic consequences for dairy farmers, processors, and rural communities. While the U.S. has expressed concerns over China and Canada’s failure to fully meet trade commitments under the Phase One and U.S.-Mexico-Canada agreements, maintaining strong market access remains critical.
Economic Impact on U.S. Dairy
Dairy is a major driver of the U.S. economy, supporting more than 3.2 million jobs and contributing nearly $800 billion annually. The industry has invested over $8 billion in new processing facilities, which will come online in the coming years. However, continued trade access is essential for growth, as approximately 18% of U.S. milk production is exported.
In 2024, U.S. dairy exports reached $8.2 billion—the second-highest level on record. Mexico and Canada remain the top two markets, accounting for more than 40% of total U.S. dairy exports. Last year, Mexico imported $2.47 billion in U.S. dairy products, while Canada purchased $1.14 billion. China has also been a key market, importing between $500 million and $800 million worth of U.S. dairy annually.
Growing Trade Uncertainty
With tariffs disrupting these essential trade relationships, the future of U.S. dairy exports is uncertain. The industry depends on reliable market access to remain competitive and expand globally. As negotiations continue, dairy stakeholders are closely monitoring developments and advocating for trade policies that promote stability and long-term growth.
