VideoU.S.–Canada
Quebec's award-winning cheese caught in Washington's 50% tariff fight with Canada
Washington's cheese tariffs are hitting American importers and Wisconsin dairy farms, while Canada answers at half the rate and keeps supply management intact.
Summary
The story begins in July 2025, when a raw milk wheel from Compton, Quebec, made by Fromagerie la Station, took best of show at the American Cheese Society. It beat nearly 1,600 cheeses, and the same farm had won the top prize the year before. The video points out that American importers were already buying this cheese and profiting from it, which it presents as trade between neighbours working well.
On July 20, 2026, President Trump signed a Section 338 dairy proclamation that centred on which companies hold quota for American cheese. Tariffs of 50% on Canadian whey, milk proteins and milk powders took effect on August 22. Canada answered on September 8 with 50% on American dairy ingredients but only 25% on American cheese. Canadian cheese was then added to Washington's 50% list on September 15, and Canadian whey was banned on September 29.
From the channel's Canadian perspective, the costs land first on American businesses and farms. A Vermont importer reported that demand for Canadian cheese has trailed off since the tariffs arrived. The video estimates that a sustained fight could cost Wisconsin dairy farms $65M to $113M a year. Prime Minister Mark Carney said Ottawa stands by supply management, and the cheese quota rules a trade panel upheld in November 2023 remain Canada's rules.
Key points
- Fromagerie la Station won best of show at the American Cheese Society in 2025, among nearly 1,600 cheeses judged, and also won the year before.
- US tariffs of 50% on Canadian whey, milk proteins and milk powders took effect on August 22.
- Canada answered with 50% on US dairy ingredients but only 25% on American cheese.
- In 2025 the US sold Canada about $134M of cheese, while Canada sold the US about $91M.
- Estimated cost to Wisconsin dairy farms is $65M to $113M per year.
- A trade agreement panel sided with Canada on cheese quota rules in November 2023.
Questions answered
Why did the US put tariffs on Canadian cheese?
The video says a Section 338 dairy proclamation signed July 20, 2026, centred on quota rules. Washington argued that Canadian retailers can hold quota for European cheese but not American cheese. Canadian cheese was added to the 50% list on September 15.
How much would the cheese tariffs cost Wisconsin dairy farms?
The video cites a University of Wisconsin trade analysis built on United Nations customs data. It estimates the cost to Wisconsin dairy farms at $65M to $113M per year, because lost Canadian sales push down the cheese and whey prices that set the price farmers receive for their milk.
How has Canada responded to the US dairy tariffs?
Canada matched Washington with 50% tariffs on American dairy ingredients, but set only 25% on American cheese. Prime Minister Mark Carney said the government stands by supply management. The video also notes that Canada's high cheese tariffs apply only above agreed quotas.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work