Dairy borders, oil ties fuel Canada–U.S. trade standoff

Canada’s dairy supply-management system shields its farmers with steep tariffs after quotas, while Canada exports heavy Alberta crude to the U.S.—a dynamic that helps explain a bilateral trade deficit and a broader political clash. Under USMCA, Canada was allowed to keep supply management in return for greater access to its dairy market, keeping the two countries economically intertwined. With the U.S. relying on Canadian oil for Midwest refineries and both sides acknowledging mutual stakes, talks are ongoing ahead of key dates to resolve the standoff, even as opponents push for favorable concessions on manufacturing and trade.