The Canadian government is countering the new U.S. tariffs on its products with a dollar-for-dollar retaliation. These tariffs take effect right after Labor Day and will impact many parts of the U.S. economy, including agriculture. Dairy products face significant exposure to 50 percent counter-tariffs on milk powders and milk protein products, and a 25 percent counter-tariff on a wide range of U.S. cheeses. Honey faces a 50 percent tariff. Farm machinery exports also take a hit with a 15 percent duty on the parts needed for harvesting or hay-making equipment. The dispute also extends to railroad equipment, which is critical for moving grain and fertilizer.
