By Jamie Martin
The U.S. dairy industry is urging the government to resolve escalating trade disputes with Canada, Mexico, and China, which have led to new tariffs on dairy exports. These tariffs threaten economic stability for American farmers and dairy processors, who rely heavily on international trade.
In response to the situation, the International Dairy Foods Association (IDFA) issued a statement calling on the administration to take action. “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.”
The U.S. dairy industry plays a crucial role in the economy, supporting over 3.2 million jobs and generating nearly $800 billion. Exports are a key part of this success, with the industry selling $8.2 billion worth of dairy products globally in 2024. Canada and Mexico are the largest buyers, accounting for over 40% of exports.
The dispute arises amid concerns that trade agreements such as the U.S.-Mexico-Canada Agreement (USMCA) and Phase One deal with China have not been fully honored. While addressing these issues is essential, industry leaders stress that prolonged tariffs could weaken U.S. market competitiveness.
The U.S. dairy industry has invested $8 billion in new processing facilities, emphasizing its commitment to global trade. However, continued tariff escalations may limit the ability of farmers and processors to capitalize on these investments.
As the situation develops, dairy leaders continue to push for a resolution that preserves trade relationships and protects American agriculture.
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Categories: National