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Mexico, Canada Propose Tariffs on US Dairy Products

May 31, 2018

The Trump Administration earlier today announced that it will end the Section 232 steel and aluminum tariff exemptions for the European Union (EU), Mexico and Canada. Effective tomorrow, June 1, steel imported into the United States will be subject to a 25 percent tariff and aluminum imports will face a 10 percent tariff. 

The EU, Mexico and Canada have announced plans to impose retaliatory trade measures affecting certain U.S. products. Earlier this month, the EU released a list of $3.34 billion worth of U.S. products that could be subject to 25 percent tariffs beginning on June 20.

U.S. dairy products were not included. Fruits, vegetables, rice and tobacco are among the agricultural products included on the list.

However, the initial Mexican list of proposed retaliatory tariffs announced earlier today does include cheese, although a list of specific tariff codes has not yet been issued.

Likewise, Canada also announced today that it will impose retaliatory tariffs on $16.6 billion in imported U.S. products, including a 10 percent surtax on yogurt, pizza and quiche. The Canadian tariffs are scheduled to go into effect on July 1. 

A complete list of products on the initial Canadian list may be found here.

The administration had previously exempted Mexico and Canada from 232 tariffs in hopes of achieving a successful outcome in the NAFTA negotiations. IDFA will continue to monitor this situation and assess how today’s announcements could affect the NAFTA discussions.

For more information, contact Dave Carlin, IDFA senior vice president of legislative affairs and economic policy at dcarlin@idfa.org.

 
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