Canada’s dairy industry says tariffs less scary than threats to supply management [Video]

Canadian dairy farmers say they are less worried about the threat of steep U.S. tariffs than about a looming battle over supply management.

U.S. President Donald Trump has threatened to impose what he calls “reciprocal” tariffs on Canadian dairy. The president’s team has repeatedly said that Canada imposes 250 per cent dairy tariffs, without explaining how dairy duties actually work or noting that the U.S. also has industry-related tariffs of its own and a highly subsidized agricultural market.

Trump posted about dairy again on social media on Tuesday, writing that “Canada must immediately drop their Anti-American Farmer Tariff of 250 per cent to 390 per cent on various U.S. dairy products, which has long been considered outrageous.”

Quebec farmer Markus Schnegg says nearly all the dairy produced in Canada is sold for domestic consumption, meaning the targeted U.S. tariffs would only affect a small fraction of the market.

But he …