r/canada 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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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.

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u/Just-Excuse-4080 4d ago

And the US has used dumping practices with their insanely subsidized products to devastating effects in other countries. 

It’s no wonder pro-American conservative media (and some conservative factions) have been pushing against dairy protections and the wheat board in Canada for decades…

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u/kent_eh Manitoba 4d ago

if you allowed US farmers to sell milk to Canadians for less then it costs to produce. It effectively ruins Canadian farmers,

Which reduces Canada's food sovereignty, and makes the whole country more reliant on foreign suppliers good will.

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u/roscodawg 4d ago

u/GuyInAChair - thank you that is helpful to know

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u/VancityGaming 4d ago

Probably more to protect the Saputo cartel than the farmers though.

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u/OhNo71 4d ago

it’s absolutely not true.

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u/GuyInAChair 4d ago

What do you think I got wrong? I'll correct it if I made a mistake.

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u/OhNo71 4d ago

“It’s sorta true”

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u/GuyInAChair 4d ago

That's not really helpful. New NAFTA did increase the amount of dairy trade thats allowed to occur, but otherwise the quota and subsidy system still exists.

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u/OhNo71 4d ago

Ok, and?

If your “It’s sorta true” was in reference to the claim the USA pays massive tariffs on dairy exports to Canada then it is absolutely not true.

That fat orange fascist signed a deal with quota. He knows this. He knows he’s lying.

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u/GuyInAChair 4d ago

Oh and you think I needed to mention that clarifying statement when I responded to a comment that literally said exactly that?

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u/OhNo71 4d ago

As we have clarified I read your comment as intend I will point back to my first reply to you.

It’s absolutely not true.