Trump, Ag and Canadian Trade View

WINNIPEG, Manitoba (DTN) -- The trade representative for the Canadian province of Manitoba said the country's supply management program for products such as dairy and eggs "is definitely going to be one of the issues on the table" as the U.S. opens its review of the United States-Mexico-Canada Agreement (USMCA).

Richard Madan, a longtime Canadian television political journalist, took over the newly created role as trade envoy in Washington, D.C., three months ago. He's been getting a "crash course" in the diplomacy of trade negotiations in the midst of one of the most turbulent times in U.S.-Canadian trade.

Madan offered his observations on the U.S.-Canadian relationship on Saturday with members of the Canadian Farm Writers' Federation. He noted Canadian trade issues rank far lower on the U.S. media landscape even though Americans are starting to feel the economic impact of higher tariffs.

"The challenge here is the U.S. is flooded with so many other domestic issues that seem to overshadow any talk about Canada-U.S. trade," Madan said. "The reality that I'm finding here, even before I accepted this role as Manitoba's representative, is trade tensions between Canada and the U.S. really haven't punctured through in the U.S. media system."

Agriculture also draws less attention than other areas of trade such as steel and automobile supply chains. "It's going to take a while before we start seeing the fruits of our labor of really putting agriculture out-front" such as pork and cattle, Madan said.

USMCA REVIEW

Madan said he has been meeting with U.S. agricultural groups and also is reaching out to Manitoba organizations about the USMCA public comment notice released by the Trump administration last week. The U.S. Trade Representative's Office opened a public comment period and will hold a hearing in November to begin its review of the trade agreement.

"I reached out to several Manitoba agricultural organizations and agencies, urging them to connect with whoever their U.S. suppliers are, their cohorts, and write letters in support of how the USCMA works on supply chains and so forth, how it benefits both countries economically and strengthens the cross-border promotion," Madan said.

MAJOR STICKING POINT

Canada's supply management system, especially for dairy, was a major sticking point in the first USMCA talks under the last Trump administration. President Donald Trump frequently criticized the high tariffs on U.S. dairy products. Still, Trump signed the trade deal after Canada made some dairy concessions. Madan said the topic has not gone away.

"I'm hearing that supply management is definitely going to be one of the issues on the table," Madan said. He later added, "Supply management is up for negotiation, but how far that goes, it is really too early to know that."

U.S. dairy exports to Canada have risen steadily since USMCA, hitting $1.18 billion last year. Dairy exports to Canada in 2025 are up 14% over 2024.

WHISKEY BOYCOTT

Trump also has pulled back on his "51st state" rhetoric, but that situation spurred Canadians to boycott U.S. products. Visits to province-operated liquor stores around Winnipeg showed shelves empty of traditional U.S. staples such as Jack Daniels and Jim Beam.

Canada lifted a 25% tariff on U.S. distilled spirits in late August. Still, only Alberta and Saskatchewan have reinstated sales of U.S. liquor. U.S. whiskey exports to Canada are down 55% to $17 million. In Manitoba, U.S. alcohol products remain banned from provincial liquor stores.

Whiskey exports are just one line item in a $71 billion agricultural trade relationship, but it is highly visible.

"The administration isn't impressed with Canada's reaction -- alcohol being a symbolic one," Madan said. He added, "But that is certainly something that the Americans have noticed. The U.S. ambassador to Canada has mentioned that."

Trade is down between the two countries. U.S. agricultural exports to Canada, at $16.2 billion, are down about 5% in value through the first seven months of 2025. Canada's agricultural exports are down about 4% compared to last year at $22.4 billion.

ALWAYS TAKE A MEETING

Madan was asked about the different approaches to trade disputes. He noted Ontario Premier Doug Ford got a lot of attention when he staged a press event earlier this month to pour out a bottle of Crown Royal to protest the company moving a bottling plant to the U.S.

In agriculture, there are a lot of cross-border alliances that make face-to-face meetings seem like a more positive approach to trade talks, Madan said, adding he would rather always take a meeting.

"The people I have met with, particularly ag side, have been very friendly. I believe in the pork and cattle associations, in particular, they're familiar with Manitoba, particularly Iowa folks who I met at a reception just two weeks ago, they're very familiar with Manitoba," Madan said.

In general, Madan said there may be issues in trade that can improve, but the trade system between the U.S. and Canada works well. He encourages U.S. groups to voice that opinion to their lawmakers and other officials.

"Going in guns blazing ... might capture a lot of headlines and TV spots, but I think that does more damage than it helps," he said.

Overall, Madan said the Canadian brand in the U.S. is a friendly one, but he added, "I think that brand is being tested as these negotiations continue."

Canadian Prime Minister Mark Carney, who took over in March, has been quieter than his predecessor Justin Trudeau in voicing his disputes with Trump. But Carney also has been making trips to Europe and Mexico to solidify trade relationship. That's "a subtle message to the White House that Canada has options," Madan said.

AG MINISTER SEES NEED TO WORK TOGETHER

Manitoba Agricultural Minister Ron Kostyshyn also spoke briefly to DTN about recent trips to Iowa and meeting with pork leaders in the state. Kostyshyn noted Manitoba ships about 2 million feeder pigs to Iowa annually. Leaders on both sides of the border need to work together to keep family farms operating, he said.

"There are a lot of small family farms that are trying to stay, and it's the same situation here in Canada and Manitoba," Kostyshyn said.

"We want to see the opportunity of family farms to stay in existence, (and) provide spinoffs for the local economy," Kostyshyn said. He added, "Ongoing discussions are key because everybody is entitled to make a profit and make things happen for the betterment of agriculture. There's going to be a need for more food in the world and we need to work together to make it happen."

Kostyshyn added, "We go through these hiccups once in a while, and all we can do is continue to talk and work together. Canada and the U.S. is the largest partnership we're working on and we want to continue that partnership, so we'll wait it out."

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

(c) Copyright 2025 DTN, LLC. All rights reserved.