Canada, one of the U.S.’s top trading partners, has imposed an import tax on ultra-filtered milk, a product used in the cheese-making process. It had previously been duty-free, but the Canadian government levied the tax after dairy farmers north of the border complained about U.S. imports.
Canadian Prime Minister Justin Trudeau pushed back against Trump’s comments Thursday, saying dairy is protected “for good reason.”
“The U.S. has a $400 million dairy surplus with Canada so it’s not Canada that’s the challenge here,” he said in an interview with Bloomberg. “Let’s not pretend we’re in a global free market when it comes to agriculture.”
The trade dispute affecting dairy farmers in states such as Wisconsin and New York provided a hook for Trump to announce that the White House plans to propose changes to NAFTA soon.
We have a 400 million surplus in dairy so Canada adds a tariff to balance the dairy surplus.
“The Government of Canada disagrees strongly with the U.S. Department of Commerce’s decision to impose an unfair and punitive duty,” And nothing was said by Canada about the 11 billion trade deficit the US had in 2016 with Canada.
The media: oh the Trump administration is out of control again.
NAFTA needs to go.