The U.S. is escalating pressure on Canada’s dairy industry, threatening a 50% tariff on billions in Canadian goods over Ottawa’s supply management system — a decades-old policy controlling production and prices for dairy, eggs, and poultry. While the U.S. and critics argue it distorts trade and raises food costs, Canada defends it as vital for farmer support, price stability, and rural livelihoods. Despite internal economic debates and global criticism, Canadian officials remain firm, calling the system a cornerstone of their economy and noting competitive international pricing. The standoff highlights deep political and economic tensions between the two nations, with the outcome set to shape North American trade for years to come.
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