Trade tensions between Canada and the United States are escalating as US President Donald Trump threatens new tariffs on Canadian dairy products, citing what he calls unfair trade practices.

Trump has accused Canada of imposing tariffs as high as 400 per cent on American dairy imports and plans to introduce “reciprocal” tariffs on foreign trading partners starting April 2. He said the measures will match the duties charged on US goods, including dairy.

“Canada is absolutely one of the worst…in terms of charging tariffs,” Trump said in the Oval Office recently.

However, experts say the reality is more complex. Canada’s supply management system, in place since the 1970s, controls dairy production, prices, and imports to protect domestic producers. While Canada does impose high tariffs on US dairy products that exceed certain quotas, those tariffs typically range from 241 to 313.5 per cent, not the 400 per cent Trump claims.

Philippe Charlebois, a spokesperson for the Canadian Dairy Commission, said no US dairy imports to Canada have been subject to the higher tariffs.

“We administered the dairy supply management system respecting Canada’s international obligations under trade agreements,” Charlebois said.

Former Minister of Export Promotion, International Trade and Economic Development, Mary Ng, rejected Trump’s claims, calling them “just not true.”

Despite Trump’s criticism, some in the Canadian dairy industry argue that trade between the two countries is already weighted in favour of the US.

Peter Overdevest, a dairy farmer and board member of Dairy Farmers of Ontario, said Canada imports more dairy from the US than it exports south of the border.

“So I think Canada is in a pretty good position that way,” Overdevest said.

He also defended Canada’s supply management system, arguing that it ensures food security rather than unfairly restricting US access.

“That’s not ripping anybody off,” he said. “It’s basically making sure that we have food sovereignty within our own country.”

As tensions rise, Canada has imposed a 25 per cent tariff on an additional $29.8 billion worth of US imports.

The ongoing dispute highlights the complexity of dairy trade between the two countries and raises questions about the future of Canada-US economic relations.

Trump’s new tariffs are set to take effect in April, leaving Canada to determine its next move in an increasingly heated trade battle.