US President Donald Trump plans a 50% tax on $20 billion of goods from Canada. The tax will start in August. He says Canada does not give US dairy farmers fair access to its market. Canada limits how much milk, cheese, eggs, and chicken farmers can make and sell. It also controls prices. Foreign dairy products above a set limit can face taxes of 200% to almost 300%.

Canadian leaders say they will protect this system. Quebec has Canada’s largest dairy industry, and Quebec Premier Christine Fréchette says the system is not open for talks. Trade Minister Dominic LeBlanc says it helps Canadian farmers and keeps food prices and supplies steady. About 77% of Canadians support the system. US farmers can sell some dairy in Canada without extra taxes, but this is only 3.5% of the Canadian market.

Some people in Canada say the system makes milk and eggs more expensive. In May, one litre of milk cost about C$3.19 in Canada and C$1.95 in the US. They want Canada to change or end the system. However, dairy farmers have strong support from politicians and the public. Ending the system could also cost the government billions of dollars to help farmers. Canada may face more pressure from Trump, but large changes are not likely soon.