NMPF’s executive vice president Shawna Morris assesses how the U.S. dairy sector could be impacted by the new tariffs imposed against imports by the Trump Administration, and how foreign countries may in turn raise their own tariffs against American exports.
Tag: dairy exports
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.”
Bipartisan Group of Lawmakers Reintroduce Bill to Protect Common Names
The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC), and Consortium for Common Food Names (CCFN) praised yesterday’s reintroduction of the Safeguarding American Food and Export Trade Yields Act (SAFTEY Act).
Led by Senators John Thune, R-SD, Tammy Baldwin, D-WI, Roger Marshall, R-KS, and Tina Smith, D-MN, in the Senate and Representatives Dusty Johnson, R-SD, Jim Costa, D-CA, Michelle Fischbach, R-MN, and Jimmy Panetta, D-CA, in the House, the bipartisan legislation would direct USDA to partner with the U.S. Trade Representative (USTR) to prioritize the protection of common names like “parmesan” and “bologna” in international trade negotiations.
“For years, many foreign countries have succumbed to the EU pressures to exploit geographical indication rules to confiscate common food and beverage names that American and foreign producers in the new world have used for generations,” said Jaime Castaneda, Executive Director of CCFN. “This lack of action has cost U.S. producers too much for too long. The Safeguarding American Food and Export Trade Yields Act is a critical step toward ensuring that American producers can count on their government to establish a policy of fairness in the global market. We thank Senators Thune, Baldwin, Marshall and Smith and Representatives Johnson, Costa, Fischbach and Panetta for their steadfast support.”
Since 2009, the EU has used trade negotiations and geographical indication (GI) rules to confiscate common names for their own producers—essentially monopolizing certain products in specific markets. For American farmers and manufacturers, this has led to lost commercial opportunities overseas and expensive fights domestically. The EU has escalated this campaign in recent years, coercing third-party countries to adopt the EU’s GI rules as part of trade negotiations.
“When the EU restricts our ability to market and sell our cheeses using ‘parmesan,’ ‘feta,’ and ‘asiago,’ it costs U.S. dairy producers markets and consumers that our members have built up over years,” said Krysta Harden, President and CEO of USDEC. “It is past time that the U.S. government take a more proactive approach to tackling this challenge. A new emphasis on common name protections—headlined by the SAFETY Act—will ensure that our producers can compete on a more level playing field around the world. Thank you to Senators Thune, Baldwin, Marshall and Smith and Representatives Johnson, Costa, Fischbach and Panetta for leading this important effort.”
By amending the Agricultural Trade Act of 1978, the legislation defines “common names” and directs USDA to join forces with USTR to proactively defend these terms in export markets. Originally introduced in May 2023, the bill represents the first farm bill effort on common names.
“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. “We appreciate Senators Thune, Baldwin, Marshall and Smith and Representatives Johnson, Costa, Fischbach and Panetta taking up this fight. U.S. producers deserve fair competition. The SAFETY Act is an important milestone to making that a reality.”
NMPF’s Morris Testifies Before USTR
NMPF Executive Vice President for Trade Policy and Global Affairs Shawna Morris testified at a hearing of the U.S. Office of the Trade Representative (USTR) Feb. 19, outlining the European Union’s misuse of Geographical Indication systems to monopolize generic terms such as “parmesan.”
Morris urged the U.S. government to proactively establish protections for common names and address the European Union’s GI campaign through the new U.S. “fair and reciprocal tariff plan.”
Morris was testifying on behalf of the Consortium for Common Food Names, which NMPF staffs. CCFN also on Jan. 27 submitted comments on the issue as part of the agency’s annual Special 301 Review, which is used to set USTR’s intellectual property agenda.
Doud Calls for Greater Trade Enforcement in Congressional Hearing, Ag Outlook Forum
NMPF President and CEO Gregg Doud told members of the House Ways & Means Trade Subcommittee on Feb. 25 that the U.S. government needs to make sure trade agreements are enforced, benefiting dairy producers, workers, and shippers who rely on exports.
“In addition to pursuing greater market access, Congress and the administration have a responsibility to work together to enforce existing U.S trade agreements,” Doud said in his oral remarks. “Trade enforcement is not a matter of political or legal technicalities. We have seen that inadequate enforcement has real-world consequences by restricting opportunities for American farmers.”
Exports are indispensable for U.S. dairy farmers and workers, Doud said in the opening of his testimony. Most of those dairy exports are shipped to markets where the United States has an existing bilateral trade agreement—underscoring the need for an initiative-taking U.S. trade agenda. Doud urged policymakers to pursue trade policies that empower U.S. dairy to compete with the European Union and New Zealand, who have benefited from increased market access from recent trade agreements made by their governments.
Priority U.S. trade agreements for enforcement and focus include the U.S.-Mexico-Canada Agreement (USMCA), Doud said. Roughly 44 percent of U.S. dairy exports are shipped to USMCA partners, illustrating why it is critical to ensure that Canada and Mexico are in full compliance and that the United States maximize dairy export opportunities with both partners, he said.
Doud in both written and oral testimony outlined specific USMCA enforcement issues the United States should prioritize, including Canada’s misadministration of its tariff-rate quota system and circumvention of dairy protein export caps. Doud emphasized the need for new deals that cut tariffs, tackle nontariff trade barriers, and are vigorously enforced.
A link to his written testimony can be found here.
Doud later that week spoke at the USDA’s annual Agricultural Outlook Forum, elaborating on his testimony with an overview of U.S. trade relationships around the world, specifically calling out the European Union for misusing rules and protections to shield their markets from U.S. farmers.
“If I say anything nice about the way Brussels does ag, it was completely by mistake,” he said. “I think it is also reasonable to assume its own farmers have the same opinion.”
Later that day Doud joined a roundtable discussion hosted by the House Agriculture Committee to discuss how Congress and the Trump Administration can promote trade policies that best support the dairy and agricultural industries.
NMPF’s Statement on Jamieson Greer’s Confirmation as U.S. Trade Representative
From Gregg Doud, President and CEO of NMPF:
“On behalf of the U.S. dairy industry, congratulations to Jamieson Greer on his confirmation as U.S. Trade Representative.
Exports play an indispensable role in supporting America’s dairy farmers and workers across the country. As I know first-hand from my prior work with him at USTR, Ambassador Greer will be a strong advocate for American farmers and American-made products. His talents as a trade lawyer are exceptional. We are eager to work with him and his team to secure opportunities for U.S. dairy producers to compete on a level global playing field and grow export markets.”
NMPF Works to Mitigate Port Strike Disruptions
A port workers strike that threatened millions in U.S. dairy exports was successfully limited Oct. 4, after NMPF and the U.S. Dairy Export Council (USDEC) called on the Biden Administration to intervene in the port workers strike.
NMPF and USDEC in an Oct. 1 joint statement and Oct. 2 industry letter co-signed by more than 270 agricultural, manufacturing, retail and additional supply chain stakeholders helped apply pressure on the negotiating parties, who agreed to resume work on Oct. 4.
More than $4.5 million in U.S. dairy exports moved through east and gulf coast ports in 2023 and a work stoppage forced exporters to cancel shipments and undertake costly reroutes. NMPF and USDEC relayed information between exporters and USDA to highlight and address storage and rerouting challenges as a result of the strike.
The International Longshoremen’s Association reached a tentative agreement with the United States Maritime Alliance to suspend the strike and resume normal operations on Oct. 3. NMPF and USDEC welcomed the end to the strike and pressed both parties to come to a long-term agreement before the current contract extension expires on Jan. 15, 2025.
U.S. Dairy Welcomes End to Port Strike, Urges Swift Conclusion of Contract Negotiations
The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today welcomed news that the labor strike affecting East and Gulf Coast ports has come to an end, allowing port operations to resume. The two organizations emphasized the importance of quickly finalizing contract negotiations to provide long-term certainty for U.S. dairy exporters.
“We are grateful to the Biden Administration for its important role in getting the parties to return to work and resume port operations,” said Krysta Harden, president and CEO of USDEC. “This is a crucial step in ensuring that U.S. dairy products can continue to reach our international customers. We encourage both sides to continue their negotiations and reach a final agreement that protects the supply chain and strengthens the reliability of American exports.”
The dairy industry has been severely affected by the disruptions, as $1.7 billion in dairy exports flow through the East and Gulf coast ports each year. The three-day work stoppage has had ripple effects throughout the export supply chain, with dairy exporters reporting cancelled sales and added time and costs to reroute products.
“We still need the contract negotiations to conclude swiftly,” said Gregg Doud, president and CEO of NMPF. “International customers of U.S. dairy products need certainty that their orders will arrive on time, and dairy producers can’t afford further disruptions.”
Dairy exporters experiencing challenges with rerouting or repositioned equipment should reach out to Tony Rice (trice@nmpf.org) with questions.
CWT Secures 60 Contracts in September
NMPF staff are continuing to reach out and answer questions for current and potential Cooperatives Working Together members during before NMPF’s Board of Directors meets Oct. 21 to discuss the self-help program going into 2025.
Meanwhile, CWT member cooperatives secured 60 contracts in September, adding 6.2 million pounds of product to CWT-assisted sales in 2024. In milk equivalent, this is equal to 56.1 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Oceania, Middle East-North Africa and South America and will be shipped from September 2024 through March 2025.
CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages. The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.
NMPF, USDEC Call for Immediate Government Intervention to Resolve Port Labor Strike
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) called on the Biden Administration to immediately intervene in the port labor strike that began at 12:01 AM EST today at East and Gulf coast ports. The dairy organizations warned that this disruption could have a devastating impact on American dairy farmers and exporters who rely on the smooth functioning of these ports to get their products to international markets.
“The administration must act now to bring both sides back to the table. The stakes are too high,” said Gregg Doud, president and CEO of NMPF. “This strike puts the livelihoods of American dairy farmers and the strength of our supply chain at risk. The administration needs to step in and end the strike before further damage is done.”
The U.S. dairy industry relies heavily on ports to maintain access to global markets. In 2023, over 530,000 twenty-foot equivalent units of dairy products, valued at $1.7 billion, were shipped through East and Gulf ports, accounting for 21% of total U.S. dairy exports by volume. The ongoing strike directly jeopardizes $32 million in dairy exports per week, with additional indirect consequences looming as exporters are forced to reroute shipments and face rising transportation costs.
“Global customers depend on the reliability of U.S. dairy products,” said Krysta Harden, president and CEO of USDEC. “Delays caused by this strike not only risk damaging those relationships but also severely impact perishable dairy products that require timely delivery. The negotiating parties need to come together to find a resolution and ensure port operations resume as soon as possible.”
Dairy exporters experiencing challenges with rerouting or stuck shipments should reach out to Tony Rice (trice@nmpf.org) with questions.
NMPF’s Doud on High Cost of Ports Strike
NMPF President & CEO Gregg Doud said a port strike across the East Coast could cost dairy $32 million a week, and U.S. agriculture as a whole $320 million a week, in an interview with Fox Business. “We have got to make sure that we have these markets open,” Doud said, noting that even a short-term strike can cause longer-term disruptions.
