Taking On EU Dairy Malfeasance is Welcome — and Long Overdue

President Trump’s tariff measures toward trading partners across the world sends a clear signal to trading partners: The United States is no longer going to stand for shenanigans that lead to unlevel playing fields. That’s especially true in dairy. And within dairy, the European Union stands apart as an example of shenanigans in action. If the president’s tariffs spur the negotiations that place their policies within the realm of reality and fairness, the effort will be worthwhile.

American farmers have long voiced their concerns about the unfairness of the EU’s agricultural trade policies, arguing that these policies create significant challenges for them in the global marketplace. Some facts: In 1980, the US exported $12 billion in agricultural products to the 27 current members of the European Union. That $12 billion was the high-water mark until 2023. We’ve gone almost 45 years bouncing in a range of between $6 billion and $12 billion annually to the European Union — accounting for zero export growth since the Carter administration. Meanwhile, the trade deficit in agricultural products is growing, and gaping: $23.6 billion at last count.

Now look at dairy trade. The U.S. imports $3 billion in dairy from the European Union — and exports $167 million. We export more cheese to New Zealand, a major dairy exporter with a population of 5 million people — or roughly the same population as Ireland, Slovakia or Norway.

That’s pathetic.

Why do we have that gap, and how do we close it?

From more than 30 years of dealing with EU agriculture, the answer to the first part is simply this: The EU is reflexively protectionist in agriculture. The U.S. “beef hormone” case against the EU, which dates to the 1980s, is a classic example: The U.S. won.  The EU has never complied.

The EU Farm to Fork Initiative, all the certification requirements and protocols, everything that requires processes in the EU, all of it is designed to keep ag imports out. The EU approach to common cheese names like “parmesan” — making it impossible for Americans to sell their products as what they actually are — is a crowning example of the creative, and inappropriate, use of non-tariff barriers to protect their market.

And none of that even touches on the subsidies the Europeans lavish on their farmers, and the schemes they use to push their products at low prices on global markets, ensuring that U.S. farmers repeatedly struggle with unfair competition as they build their own relationships via high-quality, affordable products.

Any effort to close this gap is long overdue; the Trump administration’s strategy starts this process and squarely puts the focus — and the pressure — where it should be: On Brussels, which has artificially created this lopsided trade imbalance and needs to take tangible steps to level the playing field.

In my three decades of experience, the European Union has proven impossible to deal with in agriculture — but if the president stays steady and forceful on EU tariffs, we may finally get their attention. We have no problem with the president hiking tariffs on EU imports higher to drive them to the table — the current ones are a bargain for the EU, considering the highly restrictive barriers the EU imposes on our dairy exporters. And if Europe retaliates against the United States, the administration should respond swiftly and strongly in kind by raising tariffs yet further on European cheeses and butter.

Much has been written about the president’s aggressive stances toward traditional allies such as the EU, questioning the wisdom of taking on our “friends.” But with friends like these, who needs enemies? Relationships are reciprocal, and fairness is the foundation of goodwill. There has been no fairness from the EU toward American farmers — for decades.

All that said, hope remains that American dairy can finally make real progress through productive negotiations. This administration can help achieve a level playing field for U.S. dairy producers by tackling the EU’s numerous tariff and nontariff trade barriers that bog down our exports. It can create a brighter future for U.S. dairy trade — and build hope among farmers who know that the administration is listening to them, and now the world as well.

As the administration moves forward with negotiations, we’re hoping for swiftly negotiated, constructive outcomes. We will do whatever we can to help break this decades-old logjam that has hurt U.S. farmers and consumers on both sides of the Atlantic. The field is wide open, and we are poised for progress.


Gregg Doud

President & CEO, NMPF

 

Dairy exports: opportunity in uncertainty

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 Urges Strategic Tariff Approach by U.S. Government

NMPF and the U.S. Dairy Export Council (USDEC) submitted Mar. 11 joint comments to the U.S. Trade Representative’s Office (USTR) responding to the administration’s request for information on unfair trade practices that it should examine under its “Fair and Reciprocal Plan” on tariffs.

In addition to laying out prioritized bilateral dairy trade measures among 21 countries and regions, NMPF and USDEC advocated for a collaborative approach with most trading partners to achieve the government’s national security and economic goals through targeted trade policy measures and negotiations.

NMPF and USDEC made clear in the joint comments that most U.S. dairy trading partnerships are positive and productive, adding that the administration’s new trade approach should focus on addressing high-priority tariff and non-tariff barriers through negotiations to improve export opportunities for American dairy and agriculture producers.

One partner requiring a more confrontational approach to drive real reforms, however, is the European Union. The joint comments detail the outrageous trade imbalance between the United States and the European Union and outlined the unreasonable European trade policies driving this disparity.

Complementing this message, NMPF, USDEC and the Consortium for Common Food Names submitted a second set of in-depth comments on the European Union’s ongoing campaign to misuse geographical indications around the world to monopolize generic terms like “parmesan” at the expense of U.S. competitors. Both sets of comments are informing USTR’s trade policy recommendations to President Trump. The administration has indicated its plan to implement reciprocal tariffs, which could be enacted as early as today.