The U.S. dairy industry views that Canadian milk pricing scheme to be an unfair trade practice - one that this week caught Trump's attention.
USA dairy farmers contend that the new Canadian policy, first rolled out at the provincial level past year but soon set to go national, drops the price of that Canadian product to the point where US producers can no longer make money selling it north of the border.
Trade of dairy products is not included in the current NAFTA agreement between the United States and Canada, but Stephenson said it could be added under a renegotiation.
In fact, they have imposed additional duties and import taxes on ultra-filtered milk, which is a protein-rich concentrate useful for preparation of cheese.
USA dairy farmers are "suffering so much" primarily due to low prices, Bonnett said. The U.S. says it's raised concerns about the policy change.
Grassland Dairy Products Inc.in Greenwood, Wisconsin, said it has lost Canadian business valued at as much as $100 million annually in the last week.
Canada imposed an import tax on filtered milk, which had previously been duty free, after the country's dairy farmers complained about USA imports.
As he signed an executive order providing for a review of possible dumping of steel in USA markets, President Donald Trump on Thursday demanded new trade negotiations with Canada, charging American producers are being hurt in trade involving dairy, lumber, timber and energy resources.
He also said that Canada may be in violation of existing trade accords, including the North American Free Trade Agreement.
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Trump said in Wisconsin Tuesday that he'll work on a solution.
A group of Assembly Republicans, including Speaker Robin Vos, cited the Grassland closure in a letter to University of Wisconsin System President Ray Cross on Tuesday asking him to direct UW researchers to develop more uses for milk.
Trump, who was in Wisconsin earlier this week for an unrelated event, said during the visit that the USA would "stand up for our dairy farmers". "It has very little to do with the supply management system".
Trudeau defended Canada's supply-managed dairy industry on Thursday.
Sen. Chuck Schumer, (D) NY: I would say to the Prime Minister of Canada, Mr. Trudeau, back off because it will lead to lots of trouble on both sides of the border.
Area farmers are speaking out following the news that several Wisconsin Dairy Processors are terminating milk contracts with farmers.
That said, contrary to what we think, it is Justin Trudeau who should have the big stick in this commercial war that Donald Trump wants to deliver. "It's a disgrace", Trump said.
Dairy industry leaders in Australia and New Zealand said they would support any move by the United States to draw the World Trade Organisation into the trade dispute. "Our government looks forward to sitting down with the United States". He also criticized recent pricing changes for dairy ingredients in Canada for making US imports less competitive and costing Americans revenue and jobs.
"We're $3 to $4 short of what we need to stay alive", Von Ruden said.
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