Dairy cows at Hoewisch Dairy Farm in Fremont. July 6, 2026. PC: Fox 11 Online
(WTAQ-WLUK) — Canada’s retaliatory tariffs took effect Tuesday.
They come after the U.S. imposed a 50% tariff on Canadian goods last month.
It’s a result of both sides failing to work out a new trade agreement.
Canada’s tariffs will target about $20-billion worth of U.S. goods.
Some major Wisconsin products are being impacted by Canada’s trade penalties including milk and cheese.
For milk and cream, Canada is imposing a 50% tariff, while Cheese and curd is 25%.
The change has dairy farmers worried about finances.
“Definitely could have an impact on the price of milk and of cheese, especially you know the farmer is always paid a month after the milk has left the farm, so very little control over our price,” Catawba Dairy Farmer Linda Ceylor said.
Ceylor is unsure how much of her product goes to Canada, but said if less people are buying her product because of these tariffs, that will directly lower milk and cheese prices and cost her money.
“There’s a lot of moving parts in this, more moving parts than just the tariffs being raised now. I just don’t think any of it’s going to be helpful to any farmer,” Ceylor said.
Canada is the second largest export market for the United States, just behind Mexico.
According to Edge Dairy Farmer Cooperative, U.S. dairy exports to Canada in 2025 were worth about $1.3 billion.
Losing a portion of that business means producers will have to find other buyers to absorb the excess supply and limit price impacts.
“You know, for dairy farmers, it’s going to be a trickle down effect through the supply chain. Reduced access to Canada is going to put pressure on processors to find new markets for that perishable product,” Edge Dairy Farmer Cooperative Chief Policy Officer Karen Gefvert said.
The tariffs are a response to President Trump’s 50% tariffs on some Canadian products imposed last month.
When Prime Minister Mark Carney announced the retaliatory tariffs on Aug. 22, he said they’re meant to protect Canadian workers, farmers, families and businesses.
In a statement, Carney wrote in part:
“…by rejecting a bad deal, standing up for Canada, and focusing on what we can control, we will build Canada strong for all.”
President Trump is now threatening to ban the sale of Canada’s Bombardier jets, saying they must build in the U.S. to sell here.
Despite the trade war, Wisconsin farmers just want market certainty.
“Our ask is to come back to the table, both U.S. and Canada, and revisit those trade discussions to try and come to a resolution,” Gefvert said.
For now, farmers are bracing for the financial impact as they wait to see how long these tariffs will last.
Carney said last week he was in no rush to return to trade talks.
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