The Claim: Did Trump Negotiate 200% Tariffs with Canada for Milk?

Introduction

The assertion that former President Donald Trump negotiated 200% tariffs with Canada specifically for milk is a complex issue rooted in the broader context of U.S.-Canada trade relations, particularly concerning dairy products. This article aims to dissect the claim, providing a thorough analysis of the tariffs imposed by Canada on U.S. dairy imports and the context in which Trump made his statements.

Background

Dairy tariffs have long been a contentious issue in U.S.-Canada trade relations. Canada employs a system of supply management that includes high tariffs on dairy products, which are designed to protect its domestic dairy farmers from foreign competition. These tariffs can indeed reach levels as high as 300% on certain dairy products, including milk, cheese, and butter, depending on the product and the quota system in place [3][9].

The North American Free Trade Agreement (NAFTA), which was replaced by the United States-Mexico-Canada Agreement (USMCA), included provisions that sought to address some of these trade barriers. However, many U.S. dairy farmers have continued to express frustration over Canada's dairy policies, claiming they unfairly limit access to the Canadian market [3][4].

Analysis

The claim that Trump negotiated tariffs of 200% is partially true, but it requires careful examination. While Trump has indeed highlighted Canada's high tariffs on dairy products, the assertion that he negotiated these tariffs is misleading. Canada had already established these tariffs prior to Trump's presidency, and they were not a result of negotiations initiated by him.

During his presidency, Trump frequently criticized Canada's dairy tariffs, stating that they were excessively high and detrimental to U.S. farmers. For instance, he claimed that Canada charged tariffs as high as 270% on dairy products, which aligns with reports indicating that tariffs can range from 200% to 300% depending on the product [3][5][9].

In a recent interview, Trump reiterated that Canada has "been ripping us off for years on dairy products," citing the high tariffs as a significant issue [4]. However, it is essential to note that these tariffs were not a new development resulting from Trump's negotiations but rather a longstanding aspect of Canadian trade policy.

Evidence

1. Existing Tariffs: The Canadian dairy tariff structure has been in place for years, with the World Trade Organization (WTO) reporting that Canadian dairy tariffs average nearly 249% [3]. Specific products, such as cheese, can face tariffs as high as 245%, while butter can be subject to tariffs of up to 298% [3][9].

2. Trump's Statements: In his public addresses, Trump has consistently pointed out the high tariffs imposed by Canada. For example, he stated, "Canada charges the U.S. a 270% tariff on Dairy Products! They didn’t tell you that, did they? Not fair to our farmers!" [3]. This statement reflects his ongoing criticism of Canadian trade practices but does not indicate that he negotiated these tariffs.

3. USMCA and Dairy Access: The USMCA did provide some concessions regarding dairy access, allowing for limited duty-free quotas for U.S. dairy products. However, for any imports exceeding these quotas, tariffs can indeed exceed 200% [2][5]. Trump's administration did not successfully negotiate a reduction in these tariffs during the USMCA negotiations, which suggests that the high tariffs were a pre-existing issue rather than a result of his negotiations.

4. Reciprocal Tariffs: Trump has also threatened to impose reciprocal tariffs on Canadian dairy products in response to Canada's high tariffs. He stated, "We’re going to charge the same thing" in reference to matching Canada's tariffs [4]. This approach indicates a retaliatory stance rather than a negotiation that would lower tariffs.

5. Economic Impact: Despite the high tariffs, the U.S. has maintained a trade surplus in dairy with Canada, exporting more dairy products than it imports [3]. This suggests that while the tariffs are high, they do not entirely inhibit U.S. dairy exports.

Conclusion

In conclusion, the claim that Trump negotiated 200% tariffs with Canada for milk is partially true but requires clarification. While Trump has highlighted the high tariffs imposed by Canada on dairy products, these tariffs were not the result of his negotiations; they were already established as part of Canada's trade policy. Trump's administration did engage in discussions about tariffs and trade relations, but the high tariffs on dairy were a pre-existing issue that he sought to address rather than negotiate anew.

The complexities of U.S.-Canada trade relations, particularly in the dairy sector, underscore the challenges of navigating international trade agreements and the impact of domestic policies on bilateral relations.

References

1. Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China – The White House. Retrieved from The White House
2. Trump says Canada may soon get reciprocal US tariffs on dairy, lumber | Reuters. Retrieved from Reuters
3. AP FACT CHECK: Trump partly right on Canada's dairy tariffs | AP News. Retrieved from AP News
4. Trump threatens new tariffs on Canada, including 250% tax on dairy | CNN Business. Retrieved from CNN Business
5. What Trump doesn't mention about Canada's dairy tariffs | CNN Politics. Retrieved from CNN Politics
6. Inaccurate list of Canadian tariffs circulates amid US trade war | Fact Check. Retrieved from Fact Check
7. Just facts: Canadian Tariffs - The Fulcrum. Retrieved from The Fulcrum