In recent times, Canadian cheese has gained significant popularity in the United States, clinching prestigious awards across the Western hemisphere.
The pivotal moment appears to have occurred in 2024, when Quebec’s Fromagerie la Station was awarded best in show at the American Cheese Society’s annual competition, outperforming hundreds of competitors from North and South America — and they accomplished the same achievement the following year.
Canadian cheeses also prominently appeared among this year’s award recipients at the recent ceremony.
James Hanly, a sales director at Provisions International in Vermont and one of the importers of Fromagerie la Station, remarked, “It captures the attention of American consumers and industry professionals towards something they were previously unaware of.”
The series of accolades has excited importers to introduce new artisanal cheeses from Canada that customers have not encountered before, according to Hanly.
“People get thrilled about innovative products that are proven to be high quality and tasty,” he shared during an interview with The Current.
However, Trump’s 50 percent tariffs on specific dairy products, including Canadian cheese, pose a risk to this flourishing trend.
Despite significant accolades and strong sales in American stores, a 50 percent tariff threatens this progress. American cheese importer James Hanly and Ontario goat cheese producer Mark Anderson discuss the impact of the trade war on their businesses and the dairy farmers supplying the milk.
Since the implementation of the tariffs in August, Hanly reports a decline in demand for Canadian cheese due to rising prices.
“If the cost becomes prohibitive and consumers stop purchasing it, then cheese shops or markets will cease to stock it, resulting in a loss of shelf space,” he explained.
Trump has consistently criticized Canada’s dairy sector and its long-established supply management framework, claiming it is detrimental to American dairy farmers and alleging that Canada restricts U.S. dairy products from entering its market.
Nevertheless, Hanly contends that the operational standards of Canada’s dairy industry contribute to the high quality of its cheese.
Canada employs a dairy quota system, which prevents producers from receiving payment if they produce an excess of milk.
After their remarkable success in the midterm elections, Democrats have stated their intention to work towards abolishing Trump’s tariffs against Canada, which include a 50 percent tax on specific dairy products. (Shane Hennessey/CBC)
“In the U.S., there’s a push to minimize costs and maximize milk production, which often results in lower quality milk that isn’t suitable for cheese-making,” he added.
“Conversely, in Canada, the closed system supports family farms, allowing them to thrive with predictable earnings. This stability leads to quality milk, which ultimately enhances cheese production.”
No other markets
The tariffs are significantly impacting Mark Anderson, CEO of Mariposa Dairy in Lindsay, Ontario, which has garnered numerous prestigious awards from the American Cheese Society in recent years.
With approximately 80 percent of their products being exported to the U.S., the tariffs present a severe risk to his business and the 200 dairy goat farmers from whom they source milk.
“We cannot simply stop the flow. Those farmers rely on us to process their milk into cheese and distribute it. We lack alternative markets capable of handling this volume like the U.S.,” Anderson explained to The Current.
-
Facing a potential $40M US tariff bill, this American importer is suing Trump to end some tariffs on Canada
-
Trump to swap some tariffs on Canadian goods amid midterm pressure
“Thus, we are compelled to keep our products available while navigating through these tariffs,” he noted.
To avoid passing on added costs to consumers, they have been collaborating with their farmers and their distributor, the Gellert Global Group, to absorb the expenses.
A U.S. food importer facing a tariff bill potentially reaching $40 million U.S. for the year on certain Canadian dairy products is taking action. After losing hope for a favorable trade agreement, Thomas Gellert, CEO of Gellert Global Group, has resolved to sue the U.S. government to eliminate the tariffs and seek refunds.
“We are distributing the burden so that everyone can endure some of the struggle, allowing us to persevere until this situation is resolved,” Anderson stated.
Facing nearly $40 million in tariffs on approximately $80 million U.S. worth of Canadian cheese imported annually, the Gellert Global Group is currently pursuing legal action against the Trump administration to challenge some tariffs on Canadian goods.
Anderson mentioned that the potential financial impact of the tariffs on his business aligns closely with that $40 million figure.
“It’s extraordinary. It’s not viable,” he remarked.
Nonetheless, following the Democrats’ success in the midterm elections earlier this week, both Hanly and Anderson express hope for a change in their favor.
Key Democratic leaders have indicated that the party plans to work towards abolishing Trump’s tariffs on allies, including Canada, once they assume control of Congress next year.