EAU CLAIRE, Wis. (WEAU) – Ongoing trade negotiation between the United States and Canada has created tension between the two countries, and earlier today the Canadien government officially released a list of items that they will be placing tariffs upon, which includes dairy products.
A local dairy farmer thinks that the fallout for these tensions will lead to less items over the border, leaving farmers with more product and less pay.
“A month from now, six weeks from now, when those milk trucks start coming, and we’re hit with that probability that we won’t be selling much dairy product into Canada just makes more of a surplus in the United States which always drops price,” said Darin Von Rudin, the President of the of the Wisconsin Farmers Union.
Von Ruden comes to this conclusion based on past trade history.
“Generally, over the years, situations like this have not meant lower prices, especially immediately,” Von Ruden said. “A consumer might see a lower price in 2 to 3 months, but it’s not going to be something to see overnight.”
As a dairy farmer, he is worried that he will have to pay more for his product in a store compared to how much he sold it for.
“It’s a double edged sword that farmers deal with all the time, knowing that our price is lower, but going to the grocery store, buying milk, cheese, butter, ice cream, and having to pay more for it than we did two months ago, is always a huge frustration for dairy farmers,” Von Rudin said.
Looking at the list of items that Canada will place tariffs upon. Many milk and cream products will have a rate of 50 percent. Cheese and curds will be at 25 percent.
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