Author: Theresa Sweeney
NMPF, USDEC Call for Targeted Tariffs, Trade Negotiations
Dairy leaders called for a targeted approach to tariffs and an emphasis on positive negotiations with most trading partners as the Trump Administration moved ahead with a plan for stepped-up tariffs worldwide on Tuesday.
“Tariffs can be a useful tool for negotiating fairer terms of trade,” said NMPF President & CEO Gregg Doud in a joint statement with U.S. Dairy Export Council President & CEO Krysta Harden released earlier today. “We are glad to see the administration focusing on long-time barriers to trade that the European Union and India have imposed on our exports. The administration has rightly noted both countries’ penchants for restricting sales of American products.
“In fact, 20% reciprocal tariffs are a bargain for the EU considering the highly restrictive tariff and nontariff barriers the EU imposes on our dairy exporters,” Doud continued. “If Europe retaliates against the United States, we encourage the administration to respond strongly by raising tariffs on European cheeses and butter. We also appreciate the President’s recognition of the sizable barriers facing U.S. dairy exports into the Canadian market.
“Through productive negotiations, this administration can help achieve a level playing field for U.S. dairy producers by tackling the numerous tariff and nontariff trade barriers that bog down our exports,” Doud said. “As the administration moves forward with negotiations on these tariffs, we encourage prioritizing getting back to fully open trade with U.S. FTA partners, targeting actors who have long put up entrenched barriers to American exports, and swiftly negotiating constructive outcomes with those we know are working for a long-term, fruitful relationship with American farmers.”
President Donald Trump announced Wednesday that the United States will impose a baseline 10 percent additional tariff on imports from all countries later this week, with a higher additional tariff taking effect next week on dozens of other countries the United States believes have the most unfair trade relationships with the U.S.
The new duties include a 34 percent tariff on China, 26 percent on India, 26 percent on South Korea, 24 percent on Japan and 20 percent on the European Union. Canada and Mexico, the two largest U.S. dairy trade partners, are currently exempted from the latest round of tariffs because both countries’ non-USMCA-compliant products already are subject to 25 percent tariffs that Trump imposed, then largely suspended, last month.
Targeted Use of Tariffs and Robust Negotiations Essential to Successful Results
Leaders from the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) released the following statements today in response to President Donald Trump’s tariff announcements.
“Tariffs can be a useful tool for negotiating fairer terms of trade. To that end, we are glad to see the administration focusing on long-time barriers to trade that the European Union and India have imposed on our exports. The administration has rightly noted both countries’ penchants for restricting sales of American products,” said Gregg Doud, President and CEO of the National Milk Producers Federation. “In fact, 20% reciprocal tariffs are a bargain for the EU considering the highly restrictive tariff and nontariff barriers the EU imposes on our dairy exporters. If Europe retaliates against the United States, we encourage the Administration to respond strongly by raising tariffs on European cheeses and butter. We also appreciate the President’s recognition of the sizable barriers facing U.S. dairy exports into the Canadian market.
Through productive negotiations, this administration can help achieve a level playing field for U.S. dairy producers by tackling the numerous tariff and nontariff trade barriers that bog down our exports. As the administration moves forward with negotiations on these tariffs, we encourage prioritizing getting back to fully open trade with U.S. FTA partners, targeting actors who have long put up entrenched barriers to American exports, and swiftly negotiating constructive outcomes with those we know are working for a long-term fruitful relationship with American farmers.”
“President Trump’s commitment to addressing certain unfair and harmful trade policies that American dairy farmers and manufacturers have long faced in the global marketplace can yield positive results if the tariffs announced today are used as leverage to remedy the various trade barriers facing our exporters,” said Krysta Harden, President and CEO of the U.S. Dairy Export Council. “A firm hand and decisive approach to driving changes is most needed with the European Union and India to correct their distortive trade policies and mistreatment of American agriculture including both imbalanced tariff barriers and nontariff choke-points such as the misuse of Geographical Indications to block sales of our cheeses.
The strong majority of our trading partner relationships are positive ones; this includes many of the countries that will see higher tariffs imposed on them. We encourage the administration to work swiftly with these constructive partners to negotiate new trading terms that expand opportunities for U.S. exports and secure the elimination of both tariff and non-tariff barriers.”
DMC Margin Loses $0.73/cwt in March, on Lower Milk Price and Higher Feed Cost
The Dairy Margin Coverage margin fell $0.73/cwt to $13.12/cwt for March as milk prices fell and feed costs rose.
The U.S. average all-milk price lost $0.50/cwt in February, falling to $23.60/cwt, while higher feed costs covered the rest of the margin loss. The DMC Decision Tool on the USDA Farm Service Agency website at the end of March projected the monthly margin would average $12.51/cwt during 2025, with a low of $11.10/cwt in May. Such a performance would result in no DMC payouts for farmers this year.
FARM Biosecurity Remains Leader on H5N1; First In-Person Training Approaches
The National Dairy Farmers Assuring Responsible Management (FARM) Program is preparing for its first in-person FARM Enhanced Biosecurity training, with H5N1 in dairy cattle still a significant concern one year after it was first identified.
The Program has released five new guides and one-pagers in the past year that give farmers necessary tools to protect their farms. The two-day in person training, set for April 30-May 1, will provide FARM program evaluators with the opportunity to learn how to help farmers develop an enhanced biosecurity plan.
The training also provides a networking opportunity with other dairy professionals and a chance to hear from a Virginia dairy producer about the process and lessons learned from implementing a FARM Biosecurity–Enhanced plan.
This training is supported by a cooperative agreement with USDA National Animal Disease Preparedness and Response Plan (NADPRP). The agreement supports expanding the resources available through the FARM Biosecurity program, such as additions to the current online module and a second in-person training set for 2026 in Washington.
For questions, please contact Miquela Hanselman, mhanselman@nmpf.org.
New Maritime Fees Would Undermine U.S. Dairy, NMPF Argues
NMPF and USDEC filed joint comments on March 24 to USTR urging the administration to reconsider proposed fees on Chinese-owned or built vessels under the agency’s Section 301 investigation into China’s maritime and shipbuilding practices. NMPF warned that fees ranging up to $1.5 million per port call would significantly increase shipping costs, undermining U.S. dairy export competitiveness abroad, even as it supported efforts to bolster the U.S. commercial fleet.
Nearly 40% of U.S. dairy exports rely on ocean freight. Higher fees risk lost market access, supply chain disruptions and economic harm to dairy farmers and exporters, NMPF and USDEC argued in their comments. NMPF joined two March 24 letters—one from a broad industry coalition and a second from agricultural organizations— call for alternative approaches that support U.S. strategic goals without disproportionately harming American exporters.
NMPF Strengthens Latin American Ties Amid Trade Uncertainty
Amid tense and uncertain trade relations between the United States and Mexico, NMPF Executive Vice President Jaime Castaneda reinforced U.S. dairy’s commitment to its Mexican partners at the Pan American Dairy Federation’s (FEPALE) Board of Directors meeting.
Castaneda highlighted new and continuing opportunities for NMPF and FEPALE to promote dairy consumption and boost trade between the two neighboring countries at the meeting, held the week of March 3. Castaneda also met with key Mexican farm representatives, processors and importers to discuss the looming threat of tariffs and other challenges facing the U.S. and Mexican dairy industries. Castaneda met with Ricardo Villavicencio, president of CANILEC (the Mexican association of processors and importers), and Sergio Soltero, secretary of the National Confederation of Livestock Organizations, to emphasize Mexico’s value as a trade partner to the U.S. dairy industry.
Building on these efforts, NMPF and USDEC signed a memorandum of understanding with the Guatemalan Dairy Development Association (ASODEL) on March 20 in Guatemala City. The agreement aims to boost dairy trade, promote consumption and address trade barriers across the Americas—underscoring NMPF’s broader strategy to strengthen regional ties and support open, fair dairy markets.
NMPF-Led Common Names Bill Reintroduced in Congress
NMPF, USDEC and the Consortium for Common Food Names (CCFN) welcomed the April 1 reintroduction of the bipartisan SAFETY (Safeguarding American Value-added Exports) Act that would protect the rights of U.S. dairy producers to use common food names like “parmesan” and “feta” in global markets.
Shaped and championed by NMPF, USDEC and CCFN, the legislation, first introduced in May 2023, would amend the Agricultural Trade Act of 1978 by:
- Establishing a list of names at risk and explicitly defining “common names” as a term ordinarily used for marketing a food product, as determined by the U.S. Department of Agriculture (USDA),
- Defining foreign restrictions of those common names as an unfair trade practice; and
- Directing USDA to “coordinate with the U.S. Trade Representative to proactively defend the right to use common names for agricultural commodities or food products in their markets” through various negotiating tools.
The bill is sponsored by Sens. John Thune, R-SD, Tammy Baldwin, D-WI, Roger Marshall, R-KS, and Tina Smith, D-MN, in the Senate and Reps. Dusty Johnson, R-SD, Jim Costa, D-CA, Michelle Fischbach, R-MN, and Jimmy Panetta, D-CA, in the House. It marks a renewed effort to counter the European Union’s attempts to monopolize generic names in markets around the world by misusing geographical indications rules, effectively blocking access for American cheese exporters.
“Losing the right to use common names has direct, on-the-ground consequences for U.S. dairy farmers,” said Gregg Doud, President and CEO of NMPF. “The Safeguarding American Value-added Exports Act is an important milestone to making that a reality.”
FDA Traceability Delay Creates NMPF Advocacy Opportunity
NMPF welcomed the Food and Drug Administration’s recent 30-month compliance date extension for its final Food Traceability Rule, which creates additional opportunities to push for changes.
NMPF has long opposed the Food Traceability Rule as it is currently written while supporting sensible food traceability measures, and last year made great strides working with the International Dairy Foods Association toward getting FDA to consider exempting Grade “A” cottage cheese from the Food Traceability List.
NMPF plans to use the extra time to work with FDA and the Partnership for Food Traceability, a nonprofit partnership dedicated to this issue which NMPF joined last year, to find better solutions to food traceability.
The final rule establishes additional traceability recordkeeping requirements beyond what is already required in existing regulations for people who manufacture, process, pack, or hold foods on the Food Traceability List. It applies to domestic and foreign entities producing food for U.S. consumption and was issued in 2022 in accordance with the FDA Food Safety Modernization Act.
NMPF Builds Bipartisan Coalition to Lead House Feed Ingredients Bill
NMPF in March secured bipartisan sponsors for the Innovative FEED Act in the U.S. House of Representatives, advancing efforts to improve FDA’s feed-additive approval processes.
The bill, numbered H.R. 2203, was introduced on March 18 by Representatives Nick Langworthy, R-NY, Kim Schrier, D-WA, Jim Baird, R-IN, Chellie Pingree, D-ME, Erin Houchin, R-IN, and Jim Costa, D-CA.
The newly reintroduced bill would enable the U.S. Food and Drug Administration (FDA) to review and approve animal feed ingredients using the agency’s Food Additive Petition pathway rather than review them as drugs, which is the current procedure even though the ingredients operate solely within the animal’s digestive tract and are not medical in nature. This improvement would let FDA review animal feed additives more efficiently while preserving animal, human, and environmental safety.
The Innovative FEED Act would better position U.S. dairy farmers to compete globally at a time when buyers are putting a premium on sustainably produced milk and dairy products.
Due to NMPF’s advocacy, the House measure already has 25 bipartisan cosponsors, including 11 from the House Energy & Commerce Committee, which has authority over FDA policy. The bill is likely to be reintroduced in the U.S. Senate in the coming weeks, another key step toward enactment this year.
NMPF Urges Strategic Tariff Approach by U.S. Government
NMPF and the U.S. Dairy Export Council (USDEC) submitted Mar. 11 joint comments to the U.S. Trade Representative’s Office (USTR) responding to the administration’s request for information on unfair trade practices that it should examine under its “Fair and Reciprocal Plan” on tariffs.
In addition to laying out prioritized bilateral dairy trade measures among 21 countries and regions, NMPF and USDEC advocated for a collaborative approach with most trading partners to achieve the government’s national security and economic goals through targeted trade policy measures and negotiations.
NMPF and USDEC made clear in the joint comments that most U.S. dairy trading partnerships are positive and productive, adding that the administration’s new trade approach should focus on addressing high-priority tariff and non-tariff barriers through negotiations to improve export opportunities for American dairy and agriculture producers.
One partner requiring a more confrontational approach to drive real reforms, however, is the European Union. The joint comments detail the outrageous trade imbalance between the United States and the European Union and outlined the unreasonable European trade policies driving this disparity.
Complementing this message, NMPF, USDEC and the Consortium for Common Food Names submitted a second set of in-depth comments on the European Union’s ongoing campaign to misuse geographical indications around the world to monopolize generic terms like “parmesan” at the expense of U.S. competitors. Both sets of comments are informing USTR’s trade policy recommendations to President Trump. The administration has indicated its plan to implement reciprocal tariffs, which could be enacted as early as today.
Scholarship Committee Honors Vitaliano
NMPF approved the new Dr. Peter Vitaliano Legacy Scholarship as part of the National Dairy Leadership Scholarship Program on March 4 during NMPF’s March Board meeting.
The award will help support students who demonstrates attribute exemplified by Dr. Vitaliano, honoring his longtime commitment to the success of U.S. dairy producers and cooperatives. The program also hopes to raise $500,000 this year for an endowment to support the longevity of the program, including this new legacy scholarship.
Vitaliano served as the Vice President of Economic Policy and Market Research for NMPF through 2024, leading efforts in implementing, conducting and communicating all economic analysis supporting the Federation’s programs relating to domestic and international dairy policy. He has extensive experience with, and knowledge of, U.S. dairy markets and domestic and international agricultural and trade policy.
Since 1992, he served as project director for numerous contracts between NMPF and the various national dairy promotion organizations, including the National Dairy Research and Promotion Board, Dairy Management, Inc., and the U.S. Dairy Export Council, conducting market information and economic research relating to domestic and international dairy markets.
The scholarship is designed to support individuals who demonstrate a passion for the industry through community engagement, academic interests and advocacy. Individuals selected for the Vitaliano Legacy Scholarship will also demonstrate experience with mentoring, coaching, or teaching.
The Vitaliano Legacy Scholarship will be available to applicants in the 2025-26 application cycle. To find out more information, or to donate, please visit the scholarship website.
