California dairy farmers brace for impact as Canada imposes retaliatory tariffs

By Steve Large

California dairy farmers are bracing for another economic hit as the escalating U.S.-Canada trade war brings new tariffs on American dairy products.

Canada imposed 50% retaliatory tariffs on some U.S. dairy products, including milk and cream, and 25% tariffs on cheese. 

It’s adding to already tough times for Hank Van Exel, a second-generation Lodi dairyman, who operates a dairy with about 2,000 head of cattle.

“It is high, and it’s gonna hurt,” Van Exel said. “It’s gonna hurt for a while.”

Van Exel said dairy farmers are already dealing with higher feed costs and an oversupply that has put pressure on prices.

“Right now it is a tough time to be a dairyman,” he said.

The stakes are significant for California’s dairy industry, which generates roughly $8 billion a year. About 15% of the state’s dairy exports go to Canada, according to industry figures.

Ina Simonovska, a UC Davis professor who specializes in international trade, is watching the U-S Canada trade war add more uncertainty to an already shaky economy. 

“The tariffs from Canada, if they’re going to affect anyone, they’re going to affect California exporters,” Simonovska said. 

 Asked whether he feels the dairy industry is sometimes used as a political pawn, Van Exel didn’t hesitate.

“Yes,” he said.