Every second day, 28,000 litres of raw milk leave Casey Pruim’s farm in Abbotsford in western Canada, entering a distribution system built on the assumption that the milk and the products made from it will have somewhere to go.
asserted
milk → leave → somewhere
While most is consumed in Canada, some had been sold across the border to the United States.
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some → consume → States
Those sales have largely come to a standstill since US President Donald Trump’s 50 percent tariff on $20bn in Canadian goods, including dairy products, came into effect on August 22.
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tariff → come → August
Pruim, who is also chair of the British Columbia Dairy Association representing about 400 dairy farmers across the province, told Al Jazeera that Canadian farmers do not individually decide which products are exported.
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products → represent → Jazeera
Instead, producers such as Pruim – whose farm has 330 cows milked three times a day – sell into the provincial milk-marketing system, which distributes milk to processors according to demand, including for products exported to the US.
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which → have → US
If a processor loses US demand, it may require less milk, with the impact then spread across the provincial pool.
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impact → lose → pool
Dylan Kruger, director of public affairs at BC Dairy, told Al Jazeera “there is still considerable uncertainty around the impact of the US tariffs”.
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Kruger → tell → tariffs
He said it was too early to know how the industry would be impacted or whether milk no longer sold to the US could be sold elsewhere, mitigating financial losses.
uncertain
milk → say → losses
But the tariffs and wider trade tensions have already introduced uncertainty and instability for businesses.
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tariffs → introduce → businesses
“If the processor who’s exporting some of his product to the United States can no longer sell into that market because he’s now priced out of the market with a 50 percent tariff, that’s how it would impact the dairy farm,” Pruim said.
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Pruim → export → farm
Pruim said if processor demand is squeezed, farmers would be forced to dump the milk.
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farmers → say → milk
In the worst-case scenario, the herd has to be cut.
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herd → have → scenario
“Cows aren’t like a tap; you can’t just turn them on or off,” he said.
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he → turn → them
His warning captures dairy’s particular vulnerability in a tariff war: Milk is highly perishable, collected on a tight schedule and dependent on processors whose demand can change much faster than farmers can adjust production.
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farmers → capture → production
“These tariffs are completely unwarranted,” David Wiens, president of the Dairy Farmers of Canada, told Canada’s CBC News, adding that they would affect “the supply chain, not only in Canada but in the US
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they → tell → US
Dairy trade between Canada and the US has largely operated under a free trade agreement between the US, Mexico and Canada, known as CUSMA in Canada.
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trade → operate → Canada
Canada manages the supply of dairy, poultry and eggs through a national agricultural policy known as supply management.
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Canada → manage → management
The system uses production quotas and import controls, including tariffs, to provide farmers with more stable and predictable prices while maintaining domestic supply.
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system → use → supply
Critics describe the system as protectionist and as a government-backed cartel.
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Critics → describe → cartel
Washington argues that Canada’s supply-management system restricts US dairy exports.
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system → argue → exports
Trump posted on Truth Social that “Canada had been ripping off the United States of America for years” and accused it of imposing “ridiculously high tariffs” that made life impossible for US farmers.
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life → post → farmers
Canadian producers reject that argument, saying the existing trade agreement already gives US imports substantial tariff-free access that is not fully utilised.
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that → reject → access
Canada’s dairy trade deficit with the US has grown significantly since CUSMA came into force on July 1, 2020, according to the Dairy Processors Association of Canada.
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CUSMA → grow → Canada
In 2020, Canada exported 241.3 million Canadian dollars ($173m) in dairy products to the US and imported 647.4 million Canadian dollars ($462.7m) worth of dairy and dairy products.
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Canada → export → products
In 2025, Canadian dairy exports had risen to 308.7 million Canadian dollars ($220.7m) while dairy imports from the US had more than doubled to 1.355 billion Canadian dollars ($968.5m), accounting for 13.8 percent of total value of US dairy exports, according to the association.
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imports → rise → association
Bryan Yu, chief economist at Central 1 credit union, said the immediate shock of losing a major market could be difficult for Canadian producers to absorb because replacement buyers cannot be found quickly.
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buyers → say → market
“There is going to be pain in the near term for a lot of our producers,” Yu told Al Jazeera.
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Yu → be → Jazeera
“You really can’t quickly adjust to a 50 percent tariff, because it’s uncharted waters for a lot of industries … and ultimately it shuts [Canadian producers] out, because a lot of them don’t have the margins that they can play with,” he said.
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he → adjust → that
Yu said Canadian consumers might absorb some of the additional supply while exporters search for new markets and higher-value products, but neither adjustment is instantaneous.
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adjustment → say → markets
“There are global markets as well, especially when you talk about chilled, chilled beef, chilled products and really it
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you → be → beef
’s a question of whether … other types of markets that could be available.
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that → ’ → markets
Canada has also imposed retaliatory tariffs, which came into effect on September 8 and cover $20bn worth of US products.
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which → impose → products
Dairy products are among the targeted goods.
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products → target → goods
The list includes a 50 percent tariff on milk, cream and whey products and a 25 percent tariff on many cheeses imported from the US.
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list → include → US
Canadian Prime Minister Mark Carney has framed Ottawa’s response as both retaliation and an attempt to build greater economic resilience.
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Carney → frame → resilience
Announcing the collapse of the latest negotiations, he said Canada would match Washington’s new tariffs “dollar for dollar” to protect workers, farmers, families and businesses.
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Canada → announce → workers
But retaliatory measures carry risks of their own.
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measures → carry → own
“Canada’s new retaliatory tariffs will help some industries but hurt most and weaken economic growth across the country by raising costs for producers and consumers,” Oxford Economics said in a report.
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Economics → help → report
For now, geography remains important for perishable goods like dairy products that once moved quickly across the US border and cannot be redirected overnight to a distant market without new buyers, logistics and regulatory approvals.
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that → remain → buyers
Ottawa’s Trade Commissioner Service is advising affected companies to check their CUSMA compliance, explore available relief and contact trade commissioners about potential new markets.
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Service → advise → markets
…and 2 more, not listed.
The Aporia
