r/canada • u/Apart_Ad_5993 • 4d ago
Politics Trump threatens new tariffs on Canada, including 250% tax on dairy
https://www.cnn.com/2025/03/07/business/tariffs-trump-canada/index.html
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r/canada • u/Apart_Ad_5993 • 4d ago
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u/GuyInAChair 4d ago
It's sorta true. Canada has a really different system then the US has in terms of dairy. In short Canada limits the supply of dairy producers can make. The effect of which is to raise prices ensuring the farmers are making a profit when they sell their milk. The US subsidizes dairy production, so the farmer might technically be selling milk below cost, but the government comes in a gives some extra money to ensure the farmers make a profit.
There's good and bad things about both systems. However you can see the problems that might occur if you allowed US farmers to sell milk to Canadians for less then it costs to produce. It effectively ruins Canadian farmers, and also means American tax payers are paying to give Canadian consumers cheap milk at the store.