Trump declares US industry reborn

President Donald Trump announced a new 10% across-the-board tariff on all countries. Individualized higher reciprocal duties are being imposed on countries in which the U.S. has the largest trade deficits. “April 2nd, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed and the day that we began to make America wealthy again,” Trump said, also saying unfair trade practices have harmed U.S. agriculture. “Today’s actions [are] also standing up for our great farmers and ranchers who are brutalized by nations all over the world,” he said, pointing to high Canadian dairy tariffs and European Union restrictions on American poultry. Trump also criticized Australia for banning U.S. beef while benefiting from $3 billion in beef exports to the U.S. last year. Canada and Mexico will be exempt from all the new tariffs. The preexisting 25% tariff on Canada and Mexico is still in effect, and goods that comply with the U.S.-Mexico-Canada Agreement will continue to receive preferential treatment and are exempt.

Level playing field sought

The National Milk Producers Federation and U.S. Dairy Export Council released a joint statement in reaction to President Trump’s tariff strategy. NMPF and USDEC said this plan can be positive if it is used as leverage to fix trade barriers. “A firm hand and decisive approach to driving changes is most needed with the European Union and India to correct their distortive trade policies and mistreatment of American agriculture,” said Krysta Hardin, CEO, USDEC.  Gregg Doud, president and CEO of the NMPF, agreed. “If Europe retaliates against the United States, we encourage the administration to respond strongly by raising tariffs on European cheeses and butter, he said. “We also appreciate the president’s recognition of the sizable barriers facing U.S. dairy exports into the Canadian market.”

Baldwin: Trade war will increase input costs

Wisconsin Sen. Tammy Baldwin responded to the White House reciprocal tariff strategy, saying a trade war will only increase costs for Wisconsin businesses and consumers. “I agree that we need to address trade cheats like China, bring back Made in America manufacturing, and level the playing field for workers, but Donald Trump’s reckless plan is not going to do that,” she said. “These across-the-board tariffs are going to mean higher costs for Wisconsin families and start a trade war that will increase input costs for farmers and manufacturers and cut off international markets they can sell to.”

Tariff uncertainty pressures dairy markets 

Dairy markets are feeling the strain from the new trade tariffs. Mark Newman, a market analyst with Commodity & Ingredients Hedging, noted Class III milk prices have dropped significantly in recent months. “You know, we were at $19.50, even $20. And now you’re seeing nearby Class III at $17 so it’s fallen to $2 from $3 just from these tariffs,” he said. In response to fluctuating prices, dairy producers are taking steps to protect their margins, particularly on feed costs. “A lot of our clients have been booking their meal, whether that be canola or soybean meal,” Newman said, also emphasizing the importance of maintaining flexibility in risk management strategies, particularly during the seasonal lull in demand.

Export challenges and cheese surplus weigh on dairy market 

Trade uncertainty and rising cheese production are pressuring dairy prices. Sarina Sharp, a market analyst with The Daily Dairy Report, discussed the market during the Central Plains Dairy Expo in Sioux Falls. “Unfortunately, I think that lower is the more likely path, especially for producers in this Central Plains region who mostly get Class III milk revenue,” Sharp said. Uncertainty surrounding trade policies is also affecting international demand. Sharp noted that while buyers are still purchasing, they are cautious about future commitments.

Common names bill resurfaces

Legislation has been reintroduced in the House and Senate to define a list of common names for ag commodities, food products and terms used in the marketing and packaging of products. The bill directs the U.S. Department of Agriculture and the U.S. Trade Representative’s Office to defend the right to use common names in foreign markets, like parmesan and asiago.

Shipbuilding proposal has unintended consequences

The Office of the U.S. Trade Representative is hearing from agriculture groups regarding its investigation into China’s shipbuilding dominance. The Trump administration is considering fees of up to $1 million for Chinese-made or operated ships when in U.S. ports. The International Dairy Foods Association said the proposed penalties would lead to an 8% decline in dairy exports. Becky Rasdall Vargas, International Dairy Foods Association Senior Vice President of Trade and Workforce Policy, said the dairy industry sees the value of U.S.-owned and U.S.-flagged ships when supply chains are tested. “USTR’s proposed actions, however, risk inflicting unintended consequences on American exporters, producers and workers by raising shipping costs, rerouting global trade and weakening supply chains, especially for time-sensitive, perishable products like dairy,” she said.

Dairy exports dip in February

During February, U.S. dairy exports totaled 463 million pounds. That’s down 38 million pounds from the same period last year. Cheese exports increased, up 3.4 million pounds from a year ago. Exports of butter and whole milk powder also rose, up 6.4 million pounds and 813,00 pounds respectively. According to USDA, exports of nonfat dry milk and skim milk powder declined 42 million pounds from February 2024. Whey protein concentrate exports dropped 8.6 million pounds.

Foremost Farms CEO steps down

Greg Schlafer has resigned as president and CEO of Foremost Farms USA. Schlafer has been with the dairy co-op and dairy manufacturer since December 2019. Previously, Schlafer worked for General Mills, Lamb Weston and Simplot.

Nelson takes the reins at Organic Valley

Shawna Nelson began her career as an intern with Organic Valley nearly 20 years ago. At the end of March, she took over as the co-op’s fourth chief executive officer. Nelson is also Organic Valley’s first female CEO. During her time at Organic Valley, Nelson has worked in marketing, sales analysis, recruitment, employee relations, field operations and dairy pool management.

Faculty added with Dairy Innovation Hub funding

Thanks to funding from the Dairy Innovation Hub, the University of Wisconsin-Madison and UW-River Falls have hired four new faculty members. At UW-Madison, Yun Jiang will focus on dairy nutrition; Gregg Sanford is working on soil carbon issues and cropping systems ecology; and Rebecca Smith is concentrating on plant science for dairy sustainability. The new hire at UW-River Falls is Md Azhar Uddin. Uddin started last fall and conducts dairy research on topics ranging from marketing to behavioral and experimental economics.

Trivia challenge

France consumes the most cheese on a per-capita basis at 58 pounds per year. That answers our last trivia question. For this week’s trivia, what is the term for the loose flap of skin on the underside of a dairy cow’s neck? We’ll have the answer in our next edition of the Dairy Star.

Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.