Some people didn’t like the fact that when I made this video, I didn’t mention that these tariffs only apply after US exports to Canada hit a quota.

People seem determined to argue that not mentioning the quota fundamentally changes the point I made in the video.

It doesn’t.

The quotas are only hit 5% of the time.

But that’s because Canada disincentivizes American farmers from even hitting the quota.

Canada uses production quotas, price controls, and import restrictions to match supply with domestic demand, ensuring stable prices for Canadian farmers.

This system inherently limits foreign competition, as Canada prioritizes self-sufficiency in these sectors.

The quotas under USMCA are structured in a way that makes it difficult for U.S. exporters to fully utilize them.

One major issue (from an American perspective) is how Canada administers these quotas. The U.S. has repeatedly argued that Canada allocates the majority of quota access—sometimes 80-85%—to Canadian processors rather than making it available to a broader range of importers, like retailers or food service providers.

This practice, which has been the subject of multiple USMCA dispute panels, limits the ability of U.S. producers to sell directly to end users who might pay higher prices, forcing them to sell to processors at lower rates.

So the quotas are rarely hit, but it’s not because U.S. farmers don’t want to hit them. It’s because Canada has protectionist policies that even make hitting the quotas difficult.

There’s nothing wrong with that - Canada’s government is trying to do the best by Canadians.

And now Trump is trying to do best by Americans.