Trump tariffs threaten Canadian cheese makers' U.S. success

American tariffs on Canadian dairy products are threatening to derail the recent success of award-winning Canadian cheeses in the United States. A 50 percent levy on certain cheeses, imposed in August, has caused demand to trail off as prices rise, according to importers and producers. The tariffs, enacted by President Donald Trump, target Canada's dairy supply management system, which the administration calls unfair. Canadian cheesemakers, who have won top honours at major U.S. competitions in recent years, say the new costs are unsustainable for their businesses. "If the price becomes too expensive and customers stop buying it, and so the cheese shop or market stops bringing it in as well, you basically lose placement," said James Hanly, a sales director for Vermont-based Provisions International. Hanly, an importer of Quebec's Fromagerie la Station, said the string of awards for Canadian cheese had initially made American consumers and the industry pay attention. "You know, people get excited about something new that is also shown to be high quality and delicious," he said.

The turning point came in 2024 when Fromagerie la Station won best in show at the American Cheese Society's annual competition, a feat it repeated in 2025. Canadian cheeses were heavily featured among winners again this year. Hanly argues that Canada's dairy quota system, which Trump has attacked, is part of what makes its cheese great. He said the U.S. system pushes for maximum milk at lowest cost, producing lower quality milk, while Canada's "closed circuit" supports stable, high-quality milk from thriving family farms.

The tariffs are a major threat to Mariposa Dairy in Lindsay, Ont., which exports close to 80 percent of its product to the U.S. and has also won top American Cheese Society awards. CEO Mark Anderson said the business and the 200 dairy goat farmers it buys milk from cannot simply stop production. "We haven't got the ability to turn that off. I mean those farmers count on us to take their milk, turn it into cheese, and get it to market. We don't really have any other markets that are like the U.S. that can take that kind of volume," Anderson told CBC's The Current.

To avoid passing the full cost to consumers, Mariposa is working with its farmers and its U.S. distributor, the Gellert Global Group, to absorb the tariff pain. "We're spreading it out so we could all take a little bit of the pain so we can last a little longer until this gets resolved," Anderson said. The Gellert Global Group, which imports close to $80 million US worth of Canadian cheese annually, is facing nearly $40 million in tariffs and is suing the Trump administration to try to end some tariffs on Canadian products. Anderson said the potential cost to his own business is "not too far off" that $40 million figure. "It's phenomenal. It's not sustainable," he said. Following Democratic victories in the midterm elections this week, both Hanly and Anderson say they are optimistic the situation could change. Senior Democrats have said the party will work to end Trump's tariffs on allies, including Canada, when it takes control of Congress next year. Yadude Books reported in October that a U.S. importer had sued the Trump administration over the tariffs, arguing the president overstepped his authority.

With files from CBC News