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 trade
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.”
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.
USDEC and NMPF Sign Partnership with Guatemalan Dairy Association
The U.S. Dairy Export Council (USDEC), National Milk Producers Federation (NMPF), and Guatemalan Dairy Development Association (ASODEL), signed a memorandum of understanding yesterday that will strengthen ties between the U.S. and Guatemalan dairy industries as they advocate for free and fair trade policies and promote greater dairy consumption.
The agreement outlines objectives aimed at strengthening communication and knowledge-sharing between the two industries, underscoring the economic and social significance of the dairy sector, and addressing trade barriers that negatively impact both producers and consumers alike.
The agreement outlines objectives aimed at strengthening communication and knowledge-sharing between the two industries, underscoring the economic and social significance of the dairy sector, and addressing trade barriers that negatively impact both producers and consumers alike.
“This agreement marks an important milestone in the U.S. dairy industry’s ongoing dedication to collaborating with and supporting our partners in Guatemala and throughout Latin America,” said Krysta Harden, president and CEO of USDEC. “A strong trade relationship benefits both U.S. and Guatemalan dairy sectors, and it’s clear that imposing misguided trade barriers harms everyone, particularly Guatemalan consumers. We are excited to work together to continue to build a strong partnership between our two industries.”
“The U.S. and Guatemalan dairy sectors share values and common goals,” said Gregg Doud, president and CEO of NMPF. “We’re thrilled to collaborate with ASODEL to champion effective, forward-thinking policies that will strengthen the dairy industry in the Americas and globally.”
“ASODEL is dedicated to improving the competitiveness and long-term viability of the Guatemala dairy industry,” said Ramiro Pérez, director general of ASODEL. “This collaboration with USDEC and NMPF strengthens our capacity to fulfill that mission, supporting not only our members but also Guatemalan consumers who rely on both domestic and imported dairy products.”
The agreement complements similar agreements USDEC and NMPF have made throughout Latin America, including with the Colombian Association of Dairy Industry (Asoleche), Sociedad Rural Argentina, the Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Federacion Nacional de Productores de Leche (Fedeleche).
Dairy’s Future Depends on Trade, and the U.S. Can Deliver
A billion pounds of cheese can’t be wrong: Exports point to a bright future for U.S. dairy.
The statement is true, it’s simple, and it can be easy to get lost in the back-and-forth of trade disputes among the United States and its partners. Those headlines will remain with us, as trade policy inevitably becomes a part of discussions over national security and economic competition. What remains is the undeniably real growth of U.S. dairy exports, and their critical importance toward building a better future for our industry.
Back to that billion pounds. 2024 was a record for U.S. cheese shipments, by far. U.S. cheese exports rose 17% to 508,808 metric tons, topping 2022’s previous record by more than 75,000 metric tons. Cheese exports have never topped 500,000 metric tons, which translates to more than 1 billion pounds.
Butterfat volumes improved, as have dry whey, casein and fluid milk. And while challenges with China and its soft economy kept last year from topping 2022’s overall record, sales still rose to their second highest ever.
Trade agreements that the U.S. has negotiated over the past couple decades have played a major role in helping lay the groundwork for that growth and last year’s milestone cheese export record.
With more U.S. processing capacity online, our cheese exports are poised for even more global growth. We’re developing and expanding promising markets such as Indonesia while maintaining dominance in our backyard, even as competitors like New Zealand try to elbow their way in to offset China’s weak growth. Across dairy, these positive developments will continue to grow. From 5.2 percent of U.S. milk production in 2000 to 16.4% percent today, trade has become an increasingly important outlet for farmers’ milk. It creates a promising future — and at the same time, it means the future depends on it.
At the National Milk Producers Federation, working in partnership with the U.S. Dairy Export Council, our efforts to unlock new markets and create a positive policy environment are persistent.
- In key foreign markets, U.S. dairy exporters are at a distinct disadvantage because of tariff cuts that the European Union or New Zealand have negotiated in their own trade agreements with those countries. We’re finally now able to take advantage of lower tariffs in many countries. including the 0% tariffs phased in under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), signed back in 2004. But that only underscores how much work hasn’t been done and remains left to do.
- Because the United States hasn’t kept pace on the trade agreements front, NMPF and USDEC have been pursuing unilateral tariff cuts with targeted trading partners. We’ve already seen successes with China on cheese, from Vietnam on various dairy products, and just last year from the United Kingdom on certain milk powder sales; we’re now actively working to chip tariffs down further with the United Kingdom, China and Taiwan. Two of my staff will head to Taiwan next month to advance that goal.
- We’re also pushing against trade barriers that are arising as countries invent new policies that threaten to disrupt our dairy sales. We’ve devoted extensive efforts to beating back a politically motivated countervailing duty case in Colombia. And, we’re focused on ensuring that currently open markets stay that way, and pursuing ways to streamline and expand trade with partners such as Indonesia, Costa Rica and Canada. Our efforts are positioning us well to make headway with the new administration.
- To advance beyond past trade agreements, we are always looking for opportunities to forge new deals that help exporters compete in targeted ways, much like how the U.S.-Japan agreement negotiated under the first Trump Administration boosted our cheese and whey exports. We’re also pushing for strong protections for our cheese exports using common names like “parmesan” and addressing the $2.7B dairy trade deficit we have with the EU.
We’re laying out all of these goals, and more, to the new administration to position them as key deliverables as USTR prepares to meet the White House’s April 1 deadline for submitting major trade plans.
These efforts will continue to build on the momentum we’ve created through decades of patient work, from USDEC’s on-the-ground efforts to our unparalleled global market intelligence to collaborative efforts such as the Cooperatives Working Together program, which is currently in the midst of a reinvention.
And one more thing about that billion pounds of cheese. There are more than eight billion people on this planet. We’ve only just begun.
Gregg Doud
President & CEO, NMPF
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’s Doud Urges More Dairy Trade Opportunities Before Subcommittee
Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF), told the House Ways and Means Trade Subcommittee today that expanding market access and enforcing existing trade agreements to America’s dairy producers, workers and exporters is of paramount importance.
“To keep up with our competitors from Europe and New Zealand, U.S. dairy exporters need new trade deals that cut tariffs and tackle nontariff trade barriers,” Doud said in his written testimony. “Whether the U.S. government prioritizes the enforcement the trade agreements it has negotiated and addresses trade barriers targeting U.S. exports will determine whether American farmers and workers will actually benefit from the market access that has and will be promised.”
The U.S. dairy industry last year exported close to $8.3 billion in dairy products overseas, supporting thousands of jobs across the country, despite competing against global counterparts who benefit from more recent and expansive trade agreements. Doud highlighted the critical role of existing U.S. trade agreements and called on Congress and the Trump Administration to pursue and enforce trade policies that empower the U.S dairy industry to grow its business internationally.
Doud also detailed specific agreements for the U.S. government to prioritize greater enforcement, including:
- Fixing the United States’ deeply imbalanced agricultural trade relationship with the European Union.
- Ensuring Canada holds up its end of the bargain on dairy in USMCA by fixing both the export issues into Canada and the excessive offloading of artificially low-price Canadian dairy protein into the U.S. and global markets.
- Following through with China on increasing its purchases of U.S. dairy products, ensuring timely facility listing updates, and providing protection for common names.
- Resolving India’s longstanding high tariffs and unscientific certification requirements.
“Our competitors are not slowing down,” Doud said. “They are targeting highly valuable and important dairy markets, with the backing of their governments’ proactive trade agendas. We are hopeful that the U.S. government will take this as a challenge to stand up for U.S. dairy and U.S. agriculture. Our farmers deserve a level playing field and are counting on their government to deliver.”
Regulatory Register – Winter 2025
Port Labor Strife Resolution Welcomed
Following engagement from NMPF and USDEC with the Biden Administration and the then-incoming Trump team, the International Longshoremen’s Association (ILA) and United States Maritime Alliance reached a tentative six-year contract on Jan. 8 for the United States’ East and Gulf Coast ports, avoiding a damaging strike for dairy exporters.
While the agreement is still pending ILA ratification, the deal averted a strike that was authorized to begin on Jan. 15.
The agreement came after NMPF, USDEC, and more than 50 additional leading U.S. agriculture organizations sent letters to President Biden and then President-elect Trump on Dec. 19, calling for the federal government to help ensure a lasting resolution to the labor negotiations that had reached a stalemate.
In the letters, NMPF and the co-signers detailed the extensive damage that resulted from the previous strike, which lasted from Oct. 1-3. Initially, shipments were paused to prevent a backlog and then proceeded at a below average pace once the ILA agreed to extend their existing contract until Jan. 15, 2025. An estimated $13.5 million in U.S. dairy exports were affected, with members reporting cancelled sales and costly reroutes due to the disruptions.
NMPF engaged with USDA leading up to the contract deadline in January, sharing dairy exporter needs and urging the administration to avoid any potential port labor strikes.
