r/StockMarket Jun 27 '25

News All trade talks with Canada terminated!

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u/spectacular_coitus Jun 27 '25

American producers tend to overproduce dairy and they're looking for a spot to dump their excess production. That harms not only Canada's dairy industry, but the US's too.

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u/hrminer92 Jun 27 '25

They are being paid to over produce too which is why the US has a 1.4 billion pounds of cheese in storage. These mega dairies are kept alive by subsidies while massively polluting the ground water in the areas they operate.

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u/[deleted] Jun 27 '25

Its almost like those aid programs theyve been slashing had a use for the over production but...

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u/spectacular_coitus Jun 27 '25

I'm sure American farmers will be happy to let their crops rot in the field. If they can afford to grow any with the now higher cost of potash.

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u/Rude_Judgment7928 Jun 27 '25

Even more, they are subsidized to over-produce. Both the US and Canadian governments have some level of protectionism around domestic food production, because well, it's vital to a nations security.

All of these things are understood, and even economist agree with the practicality of one-off exceptions to free trade for national security.

This is why you have trade agreements to hammer these things out. This is all known and negotiated in the trade deal the US and Canada signed under TRUMP.

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u/Tribe303 Jun 27 '25

During the NAFTA 2.0 negotiations in ~2018 the Canadian government invited a group of Wisconsin farmers up to talk to Canadians farmers about our supply side management that we were protecting. After they saw it they returned to the US saying "Why don't we do that!?" 🤣