False. This claim of a 200%+ Canadian tariff on US dairy products has constantly been debunked. There is no blanket Canadian tariff on dairy.
This is exposing the very limited knowledge most have of our trade with Canada. And everywhere else.
This parroted 200% tariff is probably a misunderstanding of supply management quotas in NAFTA. Under the most recent agreement (that Trump signed), US exporters of dairy into Canada have maximum monthly export allowances. IF the individual exporter exceeds these allowances, they are subject to increasing tariffs that start at 4% and go up in increments to a maximum of 200%.
But the 3 key things to know are 1) that no exporter has ever gone so far over their supply management quota that a 200% tariff has been applied. And 2) these stepped tariffs are only applied to INDIVIDUAL exporters, not across the board on all US exporters. And now the biggest one. 3) Supply management quotas apply both ways. The US also applies them to imports on categories of goods.
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Grouse,
I understand that however the supply quota is an artificial limit set to support the Canadian Dairy farmers. Honorable and I agree that no one goes beyond the supply limit because it’s too costly. The US has become very efficient in milk and dairy production. If there were no cutoff point Canadians would enjoy cheaper dairy products, not unlike the US does to support it’s sugar industry. Heck it wasn’t but a recent past that dairy farmers were way outproducing the demand and dumping milk.