NMPF Urges Canadian Reforms in Trade Dispute
September 1, 2026
NMPF supported the Trump Administration’s use on Aug. 22 of a novel trade authority tool in the hopes of coercing Canada to fix its dairy tariff-rate quota system.
The U.S. government’s action resulted in the implementation of 50 percent tariffs on Canadian dairy products, as well as a range of other imports from Canada. The Administration cited Canada’s unfair Tariff Rate Quota (TRQ) allocation rules, which discriminate against U.S. dairy exporters, as a main motivation behind the tariffs.
“This action sends an unmistakable message that Canada’s ongoing disregard for its USMCA dairy commitments carries real consequences,” said NMPF President and CEO Gregg Doud, urging Canada to “stop looking for workarounds and instead sit down in good faith” to resolve the outstanding implementation issues that NMPF has been raising for years.
NMPF and the U.S. Dairy Export Council have consistently urged the Administration to prioritize resolution of Canada’s chronic TRQ underfill and its habit of exploiting loopholes to sidestep USMCA dairy protein disciplines as part of the ongoing USMCA Joint Review. These new tariffs reflect that sustained engagement translating into heightened leverage.
The immediate path forward remains uncertain following the negotiations’ breakdown over non-agricultural issues in August. Canadian Prime Minister Mark Carney last week announced a sweeping set of retaliatory tariffs on Canadian imports – including several dairy products – set to begin Sept. 8. NMPF will continue working directly with the Administration to ensure any resolution of the current standoff includes binding fixes to Canada’s TRQ eligibility rules and quota administration.
