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Politics & Government

Trump Moves to Support Wisconsin Dairy, Lumber by Slapping Tariff on Canada

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President Donald Trump says Canada has "outsmarted" the U.S. for a long time, but he won't put up with it. He made the comment on Tuesday while imposing sizeable tariffs on all softwood lumber that Canada sells to the U.S., apparently in retaliation for Canada's decision to close its market to ultra-filtered milk that originates on dairy farms across Wisconsin.

READ: Wisconsin Dairy Farmers Face New Canadian Competition and a Glut of Milk

The state timber industry says the new tariffs, which average 20 percent, are good news for Wisconsin loggers and sawmills that have been struggling since the new housing market crashed in 2008. However, Canada contends the new duties will result in higher prices for home-buyers in both countries and that its trade practices have not been unfair.

According to the White House, Canada has been subsidizing its softwood lumber industry thereby putting the industry in Wisconsin and the upper Midwest at a competitive disadvantage.

Tuesday's move comes, as dozens of Wisconsin dairy farmers continue to search for new processors to purchase their milk. The company here that had processed the milk for cheese-makers in Canada says it will no longer do so as of May 1. Canada has changed its pricing structure which will enable its dairy industry to provide the ultra-filtered milk needed in cheese production.

Governor Walker has thanked President Trump for taking action and supporting Wisconsin’s dairy farmers.

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