Tag: dairy tariffs

Dairy exports: opportunity in uncertainty

Posted on by Rachel Ravencraft

By Shawna Morris, Executive Vice President, Trade Policy & Global AffairsShawna Morris Headshot

The first 100 days of the second Trump administration have been rapid and unconventional on trade policy. Every U.S. dairy producer needs exports, and tariffs may bring new leverage to negotiate expanded U.S. dairy export market access opportunities. Yet, retaliation from China and Canada has weighed heavily on the short term, creating urgency for action to help offset the losses. The May 12 announcement of a preliminary deal between the United States and China to de-escalate tariffs is an important step in the right direction.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are working together to ensure U.S. dairy farmer priorities are front and center in the ongoing negotiations. Working closely with the U.S. Trade Representative (USTR) and USDA, NMPF and USDEC’s joint trade policy team is leveraging its status as confidential trade advisers to advance new market access opportunities and ensure that barriers to dairy trade are prioritized.

This advocacy isn’t abstract. Preparing for President Trump’s April 2 rollout of a “Fair and Reciprocal Trade” plan, NMPF and USDEC developed a comprehensive road map for the U.S. government aimed at unlocking new dairy market opportunities. NMPF’s trade advocacy has focused on four areas: securing new market access, eliminating nontariff trade barriers, resetting the imbalanced U.S.-European Union (EU) trade relationship, and quickly resolving tariff retaliation by China and Canada.

Securing new market access is essential for ensuring the long-term growth and competitiveness of U.S. dairy exports. NMPF is prioritizing engagement with markets including Vietnam, Indonesia, the United Kingdom, and others where U.S. exporters face tariff disadvantages relative to competitors from the EU, New Zealand, or both. Ahead of the administration’s “Fair and Reciprocal Trade” rollout, NMPF submitted 45 pages of comments detailing the specific dairy products and markets where exporters would stand to gain the most.

NMPF has identified a long list of nontariff measures that also hamper trade, including unscientific certification requirements, monopolization of common cheese names like “Parmesan” and “Feta,” and lengthy manufacturing facility approval processes that are thinly veiled attempts to block trade. Tariffs become a secondary issue when U.S. dairy plants and products can take years to be approved to even reach a market in the first place. These challenges aren’t just bureaucratic red tape — they directly determine whether U.S. dairy products can compete globally.

The most egregious example is the EU’s use of nontariff barriers, which has driven the nearly $3 billion U.S.-EU dairy trade deficit. The EU has long employed tariff and nontariff measures to block U.S. dairy imports while enjoying relatively streamlined access into the United States for its own products, particularly cheese and butter. Contrary to what the Europeans claim, this blatant protectionism has nothing to do with history, pricing, or quality advantages — it is completely political. NMPF urges the U.S. government to use all tools, including the tariff leverage, to rebalance the deeply one-sided trade relationship.

Even in the face of retaliation against U.S. dairy producers, NMPF has pushed for strategic engagement to de-escalate conflicts and secure new opportunities for dairy. Both Canada and China, the United States’ second- and third-largest dairy export markets, respectively, have rolled back retaliatory measures in recent weeks, with China reducing retaliation from 125% to 135%, down to 10% to 20%, and Canada implementing an exemption process for dairy imports used as inputs for further processing.

This proactive approach is rooted in decades of experience. While the trade policy landscape continues to change day by day, NMPF is doggedly advocating for global trade opportunities that bring real, tangible results for U.S. dairy producers.

This column originally appeared in Hoard’s Dairyman Intel on May 19, 2025.

NMPF, USDEC Call for Targeted Tariffs, Trade Negotiations

Posted on by Theresa Sweeney

Dairy leaders called for a targeted approach to tariffs and an emphasis on positive negotiations with most trading partners as the Trump Administration moved ahead with a plan for stepped-up tariffs worldwide on Tuesday.  

“Tariffs can be a useful tool for negotiating fairer terms of trade,” said NMPF President & CEO Gregg Doud in a joint statement with U.S. Dairy Export Council President & CEO Krysta Harden released earlier today. “We are glad to see the administration focusing on long-time barriers to trade that the European Union and India have imposed on our exports. The administration has rightly noted both countries’ penchants for restricting sales of American products. 

“In fact, 20% reciprocal tariffs are a bargain for the EU considering the highly restrictive tariff and nontariff barriers the EU imposes on our dairy exporters,” Doud continued. “If Europe retaliates against the United States, we encourage the administration to respond strongly by raising tariffs on European cheeses and butter. We also appreciate the President’s recognition of the sizable barriers facing U.S. dairy exports into the Canadian market. 

“Through productive negotiations, this administration can help achieve a level playing field for U.S. dairy producers by tackling the numerous tariff and nontariff trade barriers that bog down our exports,” Doud said. “As the administration moves forward with negotiations on these tariffs, we encourage prioritizing getting back to fully open trade with U.S. FTA partners, targeting actors who have long put up entrenched barriers to American exports, and swiftly negotiating constructive outcomes with those we know are working for a long-term, fruitful relationship with American farmers.” 

President Donald Trump announced Wednesday that the United States will impose a baseline 10 percent additional tariff on imports from all countries later this  week, with a higher additional tariff taking effect next week on dozens of other countries the United States believes have the most unfair trade relationships with the U.S. 

The new duties include a 34 percent tariff on China, 26 percent on India, 26 percent on South Korea, 24 percent on Japan and 20 percent on the European Union. Canada and Mexico, the two largest U.S. dairy trade partners, are currently exempted from the latest round of tariffs because both countries’ non-USMCA-compliant products already are subject to 25 percent tariffs that Trump imposed, then largely suspended, last month. 

Targeted Use of Tariffs and Robust Negotiations Essential to Successful Results

Posted on by Theresa Sweeney

Leaders from the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) released the following statements today in response to President Donald Trump’s tariff announcements.

“Tariffs can be a useful tool for negotiating fairer terms of trade. To that end, we are glad to see the administration focusing on long-time barriers to trade that the European Union and India have imposed on our exports. The administration has rightly noted both countries’ penchants for restricting sales of American products,” said Gregg Doud, President and CEO of the National Milk Producers Federation. “In fact, 20% reciprocal tariffs are a bargain for the EU considering the highly restrictive tariff and nontariff barriers the EU imposes on our dairy exporters. If Europe retaliates against the United States, we encourage the Administration to respond strongly by raising tariffs on European cheeses and butter. We also appreciate the President’s recognition of the sizable barriers facing U.S. dairy exports into the Canadian market.

Through productive negotiations, this administration can help achieve a level playing field for U.S. dairy producers by tackling the numerous tariff and nontariff trade barriers that bog down our exports. As the administration moves forward with negotiations on these tariffs, we encourage prioritizing getting back to fully open trade with U.S. FTA partners, targeting actors who have long put up entrenched barriers to American exports, and swiftly negotiating constructive outcomes with those we know are working for a long-term fruitful relationship with American farmers.”

“President Trump’s commitment to addressing certain unfair and harmful trade policies that American dairy farmers and manufacturers have long faced in the global marketplace can yield positive results if the tariffs announced today are used as leverage to remedy the various trade barriers facing our exporters,” said Krysta Harden, President and CEO of the U.S. Dairy Export Council. “A firm hand and decisive approach to driving changes is most needed with the European Union and India to correct their distortive trade policies and mistreatment of American agriculture including both imbalanced tariff barriers and nontariff choke-points such as the misuse of Geographical Indications to block sales of our cheeses.

The strong majority of our trading partner relationships are positive ones; this includes many of the countries that will see higher tariffs imposed on them. We encourage the administration to work swiftly with these constructive partners to negotiate new trading terms that expand opportunities for U.S. exports and secure the elimination of both tariff and non-tariff barriers.”

 

Dairy Organizations Urge Intensified Negotiations to Restore Trade Flows

Posted on by Theresa Sweeney

Leaders from the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) released the following statements today in response to retaliatory measures announced by Mexico, Canada and China.

“The President believes tariffs are necessary to address the opioid crisis in the United States. We urge Mexico and Canada to take U.S. concerns seriously,” said Gregg Doud, President and CEO of NMPF. “Mexico and Canada are valuable trading partners that American agriculture depends on, and trade with those countries is critical to the well-being of dairy farmers. Let’s focus on getting the concerns ironed out quickly so we can focus on bolstering these critical trade relationships. Then, let’s put those tariff tools to work, driving change with the trading partner that’s brushed off U.S. concerns for far too long – the European Union.”

“Exports are fundamental to the health of the U.S. dairy industry. One day’s worth of milk production out of every six is destined for international consumers and U.S. dairy sales to Mexico, Canada and China account for 51% of our total global exports. That’s a lot at stake,” said Krysta Harden, President and CEO of USDEC. “Dairy farmers and manufacturers are counting on a swift resolution to this impasse and urge a redoubling of efforts at the negotiating table to find a workable way forward that addresses U.S. national security concerns while also preserving export flows that are vital to supporting American farmers and workers. We’re eager to focus on working with the Administration on expanding global opportunities for American dairy products in ways that build on the existing base of sales to our trading partners.”

NMPF Prepares Trade Policy Asks

Posted on by Theresa Sweeney

NMPF and the U.S. Dairy Export Council (USDEC) shared their U.S. dairy trade priorities with USDA and the Office of the U.S. Trade Representative (USTR) on Jan. 27, following an “America First Trade Policy” executive order issued by President Trump issued on Inauguration Day, Jan 20. Three additional executive actions to impose 10% tariffs on China and 25% tariffs on most products from Mexico and Canada were also issued on Feb. 1, although the U.S. has postponed tariffs on the latter two partners for approximately 30 days.

The Jan. 27 broad trade order directs to USTR and its interagency partners affecting U.S. dairy trade to take a number of actions including:

  • Identifying unfair trade practices
  • Conducting an expedited review of the U.S.-Mexico-Canada Agreement
  • Providing recommendations to revise existing trade agreements to achieve or maintain reciprocal concessions; and
  • Pinpointing opportunities for new bilateral or sector-specific market access opportunities.

With an April 1 deadline for the trade reports, the input from NMPF and USDEC comes at an ideal time and emphasizes the importance of resolving dairy trade irritants and targeting key markets for growth. In addition to underlining the importance of exports to the success of American dairy farmers and companies, the joint USDEC and NMPF document details recommendations to improve the industry’s global competitive standing. This includes expanding market access to bridge tariff gaps with EU and New Zealand suppliers and addressing the U.S. trade deficit of more than $2.5 billion with the European Union.

On the tariffs, President Trump announced the measures due to result of unresolved concerns related to illicit drug flows and illegal immigration. Mexico and Canada have both promised retaliatory tariffs should U.S. tariffs move forward. The pause in tariffs on Mexico and Canada means trade with those countries can continue uninterrupted for the coming month.

In a Feb. 2 statement, Krysta Harden, president and CEO of USDEC, encouraged the administration “to draw on the types of tools President Trump wielded so successfully when negotiating USMCA—bringing everyone to the table and working out a solution that minimizes unintended consequences for farmers, rural manufacturers, and consumers.”

NMPF and USDEC also joined more than 400 agricultural organizations in signing onto a Jan. 15 letter to Senate Agriculture Committee Chair John Boozman, R-AR, and Ranking Member Amy Klobuchar, D-MN, to endorse Brooke Rollins for Secretary of Agriculture.

Leading up to her Jan. 23 confirmation hearing, NMPF collaborated with members of the Senate Agriculture Committee to highlight dairy trade challenges. Senators on both sides of the aisle stressed the importance of USDA pursuing a more active trade agenda and vigorously advocating on behalf of U.S. farmers in international negotiations.

Dairy Industry Applauds USTR Decision to Pursue USMCA Dispute Settlement Case Enforcing Dairy Market Access Obligations in Canada

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) praised today’s announcement that U.S. Trade Representative Katherine Tai has initiated a U.S.-Mexico-Canada Agreement (USMCA) dispute settlement proceeding over Canada’s administration of dairy tariff rate quotas (TRQs).

USDEC and NMPF have been calling for full enforcement of Canada’s trade obligations given Canada’s ongoing refusal to change how it handles dairy market access under USMCA. Initiating an official dispute settlement will, under USMCA rules, establish a panel to determine whether Canada has been violating its trade obligations. If the panel determines a lack of compliance, the U.S. would then be granted the right to impose retaliatory duties if Canada fails to fix its problematic TRQ administrative practices.

“On behalf of America’s dairy farmers, we thank Ambassador Katherine Tai for initiating the USMCA dispute settlement process by requesting the formation of a panel to examine Canada’s failure to provide access to its dairy TRQs in accordance with USMCA,” said Jim Mulhern, NMPF President and CEO. “Canada has failed to take the necessary action to comply with its obligations under USMCA by inappropriately restricting access to its market. This needs to stop and we are thankful that USTR intends to make that happen.”

“Our appreciation goes to the Biden Administration for moving forward with a dispute settlement action against Canada’s administration of dairy TRQs,” said Krysta Harden, USDEC President and CEO. “We have had long-standing and well-founded concerns that Canada undermines its trade agreements when it comes to dairy. Our trading partners need to know that failure to meet their agricultural trade commitments with the United States will result in robust action to defend U.S. rights – today’s action demonstrates just that. The expansion of dairy market access opportunities is critical for our industry. Today’s action is a critical step toward maximizing current export opportunities while sending a strong message in defense against the erection of future barriers in Canada and other markets as well.”

USDEC and NMPF have carefully monitored Canada’s actions regarding its USMCA dairy commitments and have urged the administration and Congress to make this a priority as soon as USMCA entered into force. The organizations highlighted for USTR and the U.S. Department of Agriculture the inconsistencies between Canada’s dairy TRQ allocations and Canada’s USMCA obligations. In a detailed filing submitted to the administration, NMPF and USDEC provided the agencies with a specific review of the Canadian TRQ system and an explanation of the negative impacts resulting from them.

The concerns raised by USDEC and NMPF have been echoed by a broad bipartisan coalition of members of Congress. Most recently, several leading members of the House Ways and Means and Agriculture Committees joined together on a bipartisan message to USTR urging further enforcement action and multiple members of Congress shared a similar message during Amb. Tai’s trade oversight hearings in May. Prior to that, Senators broached the topic with USTR during Ambassador Tai’s confirmation hearing process. Last August, 104 Representatives sent a letter to USTR and USDA asking for Canada to be held accountable to its trade promises while a letter in the Senate was signed by 25 Senators. USDEC and NMPF commend the continued engagement of so many members of Congress on this important issue.