Trump can't compute his blunt force not working. He thinks if he uses a bazooka, people will cave. But if they show no signs of caving, he surrenders quickly.
This should definitely be a big part of the lesson. Capitulation, especially early/immediately, is the wrong tactic to address any of the action coming from the White House.
Since he (temporarily?) rescinded the tariffs on things covered by the USMCA he's reaching for anything else he can put a tariff on. And they have to be huuuge to make up for those other things (90% of what we import).
NY state milk dairy farmers are loving it. The problem is their supply is pretty darn close to 100% utilized and milk isn't a product that travels well.
It is a reciprocal tariff for Canadian Surplus? tl;dr: there's a flat 7.5% tariff on dairy imported into Canada that increases to around 250% if you import it without purpose. Sounds like Trump heard this and is now being idiotic about it.
This is a great explanation and makes the petulant persimmon’s actions look every bit as unhinged as they are. Yet another lie/gaslighting/distraction.
More like Canada won't allow imports of heavily subsidized dairy from the US. The real cost of a gallon of milk is about twice what the average American pays at the store, and as far as I know, Canada doesn't subsidize milk.
Canadian dairy product prices (for dairy products made in Canada) have always been roughly double US prices. That's how dairy production works in Canada. So there's always been a tariff at the border for dairy products from the US. I even got dinged once bringing 4 gal of milk from the US to Canada.
Canada protects its family farms, that’s why their average farm size is half of American dairies.
I live in a small Vermont town that 40 years ago had 8 dairy family farms.
Today it has one and the best of the crop land is owned by corporate farmers.
I wish we had protected the family farms.
Black Diamond Cheddar is produced in Canada. I know from experience that Canada is pretty strict about the amount of cheese you can take from the US to Canada w/out paying duty. In 2015 I think it was $20 worth per person.
Not sure of the exact numbers but under supply management Canada does levy tariffs in the 100s% with the express intention of keeping foreign dairy out - internally it’s basically a tax on food for poor people.
As it does this it doesn’t export much dairy so Trumps 250% will be on a small amount.
So this has nothing to do with keeping out Canadian dairy or Americans buying more American dairy. But is about trying to get more American dairy into Canada? Is that correct, if a bit simplified?
I think you are correct. Under free trade agreement US dairy into Canada is tariff-free up to 3.5% market share. After that tariffs apply. Designed to protect Canadas much smaller dairy industry. Otherwise Canada would be swamped by cheaper foreign imports and Canadian industry would be in trouble.
To be fair (as we Canadians try to be) access to Canada's dairy market has always been a source of friction in trade negotiations. But what Trump is complaining about is what he agreed to when he negotiated the last trade agreement. One he called the best agreement ever.
As a, ‘newcomer’ Canadian I don’t understand why most Canadians aren’t down on supply management which is a tax on food (which has no sales tax) impacting the poorest Canadians whilst in the modern day enriching ‘big farm’ rather than the small farmers it was originally intended to protect.
Comments
2018 link: https://www.farmprogress.com/management/does-canada-really-charge-a-270-tariff-on-milk-
“The biggest surprise was the quantity of use of antibiotics in the animal sector – about 64,000 tons, which is expected to go to about 105,000 tons by 2030."
https://modernfarmer.com/2015/09/cddep-report-antibiotic-resistance/
https://bsky.app/profile/jdcmedlock.bsky.social/post/3ljpvyoow5c2l
https://images.app.goo.gl/15aMhJeFwNV4boUw9
I live in a small Vermont town that 40 years ago had 8 dairy family farms.
Today it has one and the best of the crop land is owned by corporate farmers.
I wish we had protected the family farms.
As it does this it doesn’t export much dairy so Trumps 250% will be on a small amount.