Trump’s tariffs target Canadian whey amid global protein shortage
The U.S. administration is imposing 50-per-cent tariffs on Canadian dairy proteins, accusing Canada of using loopholes in its supply-management system.
The administration of U.S. President Donald Trump has announced coming 50-per-cent tariffs on hundreds of Canadian products, including whey and various dairy proteins. These measures, effective August 19, affect over US$200-million in protein exports to the United States. The White House justified the decision by citing “discriminatory” rules within Canada’s supply-management system, which curtails domestic production and imports to maintain price levels.
This policy directly impacts major Canadian dairy processors, including Agropur Inc., Saputo Inc., and Lactalis Canada. U.S. dairy exporters have long argued that Canadian producers hold an unfair market advantage, using production surpluses to dump low-priced proteins globally. The U.S. Dairy Export Council further alleges that Canada has been bypassing USMCA trade commitments by disguising dairy proteins as other types of products to circumvent export restrictions.
The timing of these tariffs is particularly critical, as the U.S. market faces a severe protein shortage. According to U.S. Department of Agriculture reports, American whey stocks are completely sold out for the remainder of the year, with high-protein whey prices surging 162 per cent since early 2025. Hrvoje Fabek, a professor of food science at the University of Guelph, notes that while dairy proteins were once considered an affordable byproduct of cheese production, they have now become a highly sought-after commodity.
Global demand for protein has skyrocketed, fueled by fitness influencers and the prevalence of weight-loss drugs like Ozempic, which can cause muscle mass loss. High-protein diets are increasingly recommended by medical professionals to maintain lean muscle, highlighting the value of dairy proteins, which are considered "complete" due to their full chain of essential amino acids and high digestibility.
Furthermore, protein consumption has become a polarized political issue. Elaine Power, a professor at Queen’s University, observes that current cultural trends see influencers promoting diets rich in animal proteins. This shift is reflected in U.S. government policy, where Health and Human Services Secretary Robert F. Kennedy Jr. updated the national dietary guidelines in January, effectively doubling recommended protein intake to 1.2 to 1.6 grams per kilogram, further tightening the global supply-demand balance.