U.S. President Donald Trump escalated his tone towards Canada on Friday evening, accusing it of "cheating" in its trade dealings with American farmers, particularly in the dairy sector, due to its continued imposition of high tariffs on American imports.

In a post on the Truth Social platform, Trump stated: “Canada is cheating our farmers in the United States-Mexico-Canada Agreement (USMCA). In 2024, Canada kept high tariffs on many American goods, especially in protected sectors like dairy, which operates under a supply management system.”

Trump noted that Canada imposes tariffs of up to 250% on American dairy products, such as milk, butter, and cheese, considering these fees part of a systematic policy to protect Canadian farmers from foreign competition at the expense of American farmers.

While Trump has not officially announced new tariffs, he issued a stern warning to Ottawa saying: “Enjoy it while you can!” implying that tariffs on Canadian products, including dairy and lumber, could occur "at any moment."

The Canadian supply management system is known for imposing restrictions on the quantity of dairy and agricultural products imported, as part of a policy aimed at protecting local farmers from foreign competition. However, Washington views this policy as giving Canadian farmers an unfair competitive advantage under the North American Free Trade Agreement.

The trade tensions between the two countries date back to the early years of Trump's presidency, where the U.S. president consistently criticized Canadian trade protection policies, despite signing the new free trade agreement (USMCA) in 2020.

Observers believe Trump's new threats could escalate trade relations between Washington and Ottawa, especially since Canada heavily relies on the U.S. market for exporting its agricultural products. The trade exchange between the two countries amounts to over $600 billion annually, making any potential trade escalation a significant concern for both the American and Canadian economies.

For its part, the Canadian government has affirmed on more than one occasion that the supply management system is a cornerstone for protecting the interests of Canadian farmers, emphasizing that this policy does not violate free trade agreements with the United States.

The rising trade dispute between the two countries threatens to open a new front of tension in economic relations between Washington and Ottawa, at a time when global markets face uncertainty regarding trade stability.