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U.S. farmers sour on Canadian dairy: The final nail in supply management's coffin Add to ...

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It was clear for months before Donald Trump finally pointed his finger this week at “some very unfair” dairy policies north of the border that Canada was sleepwalking toward a trade dispute that would threaten, once and for all, the survival of supply management in the milk sector.

Politicians in Wisconsin and New York warned then-trade minister Chrystia Freeland last summer that a move by Canadian regulators to shut out U.S. imports of ultra-filtered milk could trigger a trade war that would bring the whole system of supply management crashing down. But such warnings were simply dismissed by Canadian officials as sour grapes on the part of a U.S. dairy industry upset that a once-lucrative loophole in Canada’s dairy tariff wall was being nailed shut.

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