Canada's 'powerful' dairy sector is in Trump's trade crosshairs

Canada's dairy industry policy is among the most politically sacrosanct in the country.

Now, Canada's dairy supply management system is back in the spotlight after the US president singled it out as one of three main irritants used to justify a 50% tariff on $20bn worth of Canadian goods imported to the US, which is set to come into effect in August.

Trump argues the system, which sees production quotas, set pricing, and import quotas on dairy, eggs, and poultry, is "unreasonable" to American farmers who want to sell their product north of the border.

Canadian politicians will now have to decide whether to stand firm on its popular supply management system or risk the ire of the public and a politically "powerful" dairy industry by attempting to fix this issue with Trump.

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