In recent years, Canadian cheese has gained significant popularity in the United States, earning some of the most prestigious accolades in the Western hemisphere.
A pivotal moment occurred in 2024, when Quebec’s Fromagerie la Station clinched the title of best in show at the American Cheese Society’s annual event, competing against hundreds of entries from both North and South America, and successfully repeated this achievement the following year.
Canadian cheeses also prominently featured among the winners at this year’s competition.
James Hanly, a sales director for Provisions International in Vermont and an importer of Fromagerie la Station, remarked, “This has captured the attention of American consumers and industry professionals who were previously unaware of these offerings.”
The series of accolades has motivated importers to seek out new artisanal cheeses from Canada that customers have yet to discover, according to Hanly.
“People are thrilled by something fresh that has proven to be of high quality and great taste,” he stated in an interview with The Current.
However, Trump’s 50 percent tariffs on certain dairy products, including Canadian cheese, pose a significant threat to this burgeoning success.
Canadian cheese has been awarded many prestigious prizes and sold rapidly in American stores, but a 50 percent tariff threatens to disrupt this momentum. American cheese importer James Hanly and Ontario goat cheese producer Mark Anderson discuss how the trade conflict is affecting them and the dairy farmers who supply the milk.
Since the implementation of the tariffs this August, Hanly has noted a decline in demand for Canadian cheese due to rising prices.
“If the price becomes too high and customers stop purchasing it, the cheese shop or market will cease to stock it, which ultimately leads to loss of shelf space,” he explained.
Trump has consistently criticized Canada’s dairy sector and its long-standing supply management system, claiming it is unfair to American dairy farmers and alleging that Canada restricts U.S. dairy products from its market.
Nevertheless, Hanly argues that Canada’s dairy system is integral to the exceptional quality of its cheeses.
Canada employs a dairy quota system, ensuring that producers do not receive payment for exceeding milk production limits.
Following their success in the midterm elections, Democrats have stated they will work to eliminate Trump’s tariffs against Canada, which include a 50 percent duty on certain dairy goods. (Shane Hennessey/CBC)
“In the U.S., there has been a focus on maximizing milk production at the lowest cost, resulting in inferior quality milk unsuitable for cheese making,” he stated.
“Conversely, in Canada, the closed-loop system promotes the success of family farms, allowing them to predict their earnings, which contributes to the milk’s quality.”
No alternative markets
The tariffs are significantly impacting Mark Anderson, CEO of Mariposa Dairy in Lindsay, Ontario, which has gained numerous accolades from the American Cheese Society for its cheeses.
With nearly 80 percent of their production exported to the U.S., the tariffs present a considerable challenge to his business and the 200 dairy goat farmers who supply their milk.
“We can’t simply stop this process. Those farmers depend on us to transform their milk into cheese and deliver it to market. We lack other markets that can accommodate this volume like the U.S.,” Anderson shared with The Current.
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“We are essentially compelled to keep our products available and find solutions to navigate these tariffs,” he added.
To avoid passing on extra costs to consumers, they have sought ways to absorb these expenses in collaboration with their farmers and their distributor, the Gellert Global Group.
A U.S. food importer facing a potential tariff bill of nearly $40 million for the year on certain Canadian dairy products is taking action. After losing hope for a trade agreement, Thomas Gellert, CEO of Gellert Global Group, has decided to sue the U.S. government to seek the elimination of the tariffs and secure refunds.
“We are distributing the burden so that we can all endure some of the hardship and last longer until this issue is resolved,” Anderson stated.
With approximately $40 million in tariffs on nearly $80 million worth of Canadian cheese imported each year, the Gellert Global Group is currently engaged in legal action against the Trump administration to challenge some tariffs on Canadian products.
Anderson mentioned that the potential costs from the tariffs for his business are “not too far off” from the $40 million figure as well.
“It’s staggering. It’s unsustainable,” he expressed.
Nevertheless, following the Democrats’ sweeping victory in the recent midterm elections, both Hanly and Anderson are hopeful that change may be on the horizon.
Prominent Democrats have indicated that the party intends to address Trump’s tariffs on allies, including Canada, as they prepare to assume control of Congress next year.