Wisconsin dairy farmers hopeful about Trump's trade deal

Wisconsin farmers could benefit from a deal announced by President Donald Trump under which Mexico and Canada would drop tariffs on U.S. agricultural products in exchange for the U.S. suspending tariffs on steel and aluminum.

"I’m pleased to announce that we've just reached an agreement with Canada and Mexico and we’ll be selling our products into those countries without the imposition of tariffs, or major tariffs, Big difference," Trump said Friday during an address to the National Association of Realtors.

Mexico buys nearly a quarter of all dairy products exported by the U.S. and the American dairy industry has reeled from Mexican tariffs — of 15% to 25% — on cheese.

Canada and Mexico are Wisconsin’s two biggest export customers, with a combined $10.5 billion in products in 2018 including cheese, powdered milk, corn and soybeans. In early 2017, dozens of Wisconsin dairy farms were nearly forced out of business when they lost their milk buyer affter a trade dispute with Canada.

Trump promised to settle that fight, and other agricultural skirmishes, in a new United States-Mexico-Canada Agreement announced last fall.

But that new agreement has yet to be ratified by the three countries, partly because of the tariffs issue. Now, Wisconsin dairy farmers say they’re hopeful that Trump’s announcement will clear the way for the deal's passage.

“We are eager to see Mexico respond by dropping their tariffs on U.S. dairy products ... More than 20 years have been dedicated to increasing U.S. dairy export volumes to Mexico,” Farm First Dairy Cooperative, based in Madison, said in a statement.

“This is a step in the right direction, especially as Congress considers USMCA. … There is more work to be done outside of this trade agreement, especially as trade talks continue with countries like China,” Farm First Dairy Cooperative said.