Vermont cheesemaker Mateo Kehler says Canadian tariffs and consumer boycotts have reduced his exports to zero while rising input costs put more pressure on dairy producers.
U.S.-Canada Trade War Sends Vermont Cheesemaker’s Exports to Zero
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Canada’s retaliatory tariffs place a 25% duty on U.S. cheese and 50% on certain milk, cream and whey products. Vermont cheesemaker Mateo Kehler explains how tariffs, Canadian consumer boycotts and rising input costs are squeezing dairy producers and cutting off a critical export market.
Transcript
The U.S. economy is roughly 13 times larger than Canada’s and more than 70% of Canadian export goods head south.
For Northeast dairy farmers like Mateo Kehler, Canada is a critical market.
Mateo Kehler, Jasper Hill Farm, Vermont - “I’m the co-founder of Jasper Hill Farm with my brother Andy. We started this business milking cows and making farmstead cheese 23 years ago in Greensboro, Vermont, up in the Northeast Kingdom right on the Canadian border.”
This week’s counter-tariffs include a 25% duty on U.S. cheese and a 50% charge on certain milk, cream, and whey products. These duties could reduce demand for U.S. dairy products causing a surplus of supply that would force American producers and processors to seek alternative markets.
Mateo Kehler, Jasper Hill Farm, Vermont - “February of last year when the first round of tariffs were announced, our purchase orders went from absolute gangbusters after an incredible holiday season to zero. Zero cases of cheese ordered. Our exports represent about 7-8% of our business historically. This year, it’s a big old donut.”
American dairy farmers have been operating on tight margins for years and their cost of production consistently outpaces the low prices they receive for their milk.
Mateo Kehler, Jasper Hill Farm, Vermont - “We’ve been able to pivot and build our sales in the U.S. Last year was the worst year we’ve ever had. This year’s turning out to be okay, but we’re dealing with a crazy amount of inflation for the input side of our business. We milk 200 cows and the price of diesel, the price of fertilizer and on the packaging side, a lot of our core comes from Canada from raw materials that are produced in Canada. Those are all being tariffed again. The underlying costs of doing what we do day in and day out are just escalating.”
The Trump administration touts the tariffs as the way to ensure a level playing field for the nation’s farmers and protect American production.
Mateo Kehler, Jasper Hill Farm, Vermont - “The Trump administration's policies have absolutely punished farmers up and down. Doesn't matter what you know, your commodity might be. The Trump administration has been an absolute disaster for farmers. For rural America generally it is absolutely disastrous.”
In response to the newly imposed Canadian tariffs, the Trump administration plans to ban imports of some dairy products, motorcycles and a list of alcoholic beverages. The trade war and talk of making the country the 51st state have only served to fuel anger in Canada, prompting boycotts of U.S. goods and a reduction in tourism.
Mateo Kehler, Jasper Hill Farm, Vermont - “We need Republicans to grow a spine and stand up to the insanity of the economic policies that we're all dealing with. This is, you know, way beyond whether or not you're a Democrat or a Republican. These tariffs are affecting everybody. There are no winners here.”
For Market to Market, I’m Laurel Bower.
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