Mexican Cheese Tariffs Could Devastate American Dairy Export Sales

Mexico is an important export market for American dairy, specifically cheese.  Mexico takes up to 28% of all U.S. cheese exports, which means it buys more American cheese than any other market.  Mexico’s tariffs in response to the tariffs on steel and aluminum put into effect by President Trump. U.S. Dairy Export Council President and CEO Tom Vilsack says, “Those tariffs on cheese will potentially eliminate the competitive advantage we have in our number one market. That’s a legitimate concern.”

Last year alone, the U.S. held 75% of the entire Mexican cheese import market.  The Mexican tariffs include a 15% duty on fresh cheeses, which climbs to 25% after July 5th.  Shredded or powdered cheeses face a 10% tariff, which jumps to 20% after July 5th.  The full impact of the tariffs on the price of milk is still unknown.

Greg Ibach, Under Secretary for Marketing and Regulation, said the Trump Administration is monitoring the situation closely and will not hesitate to take action to prevent farmers from bearing the brunt of trade negotiations. U.S. cheese imports to Mexico were worth $391 million last year.​

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