Guest Columns

Perspective:
WCMA

Trade priorities in challenging times

John Umhoefer

John Umhoefer is executive director of the Wisconsin Cheese Makers Association.
He contributes this column monthly for Cheese Market News®.

Tariffs and trade remain in the foreground of business planning as the Trump administration continues to roll out tariffs around the globe. Recently the Wisconsin Cheese Makers Association (WCMA) board approved a Dairy Trade Policy Platform to voice dairy processor priorities in Washington, D.C.

Here’s the latest in the ever-evolving tariff picture:

• President Trump plans to announce new, higher tariffs — above the 10% level in place — for up to 150 countries within days of this writing.

• A new trade agreement with Japan will set a 15% tariff on goods imported into the U.S.

• In mid-July, the Trump administration threatened to impose 30% tariffs on Aug. 1 for Mexican goods coming to the U.S. Currently no tariffs are levied on Mexican goods per the standing U.S.-Mexico-Canada Agreement (USMCA).

• The goalposts continue to move on a trade deal with China, subject now to a slippery Aug. 12 deadline. A deal between the two nations in June dropped U.S. tariffs on Chinese goods to 30%, and China’s retaliatory tariffs were reduced to 10% on U.S. products.

• Dairy trade

Recent dairy exports by U.S. manufacturers present a mixed bag, with good news for cheese producers and reduced sales for firms marketing milk powders and whey products.

Through May 2025, “ongoing trade tension with China dragged down shipments of low-protein whey (mostly whey permeate) and lactose,” U.S. Dairy Export Council reports. Exports of whey permeate to China dropped 70% in May 2025, down 34 million pounds compared to the previous May, and WPC 80 and nonfat dry milk sales dropped 83% and 75%, respectively.

Cheese exports have held strong, with May sales setting a new single-month record. Sales to Mexico dipped in May, but Japan, South Korea, Central America and other partners picked up volume. In the first five months of 2025, American cheesemakers sold 533 million pounds of cheese abroad, 7% more than the same time in 2024.

• WCMA trade policy

This spring, a working group of WCMA members, led by policy chief Rebekah Sweeney, prepared a Dairy Trade Policy Platform representing the voices of U.S. dairy manufacturers and marketers, large and small. With the approval of our 27-member full board in June, this guidance will focus WCMA efforts in dairy trade matters.

Platform Priority 1: Today’s Trade War Fallout and Policy Instability

Members first looked to immediate concerns: Dynamic policy shifts in trade hamper long-range business planning, degrade the U.S. as a credible trade partner, disrupt supply chains and threaten overseas sales volumes.

Focus areas here include:

• Stabilize U.S. trade policy through transparent, predictable, multilateral or bilateral engagement.
• Rebuild trust with partners through consistent trade policies.
• Prioritize relief from port and shipping delays, including vessel and container shortages, as part of federal supply chain resilience efforts.
• Provide tariff relief for critical processing equipment via the expansion and application of tariff code exemptions for certain agricultural equipment (9817.00.50) to include dairy processing equipment.
• Create compensation programs for tariff-related export losses, including both dairy processors and dairy farm partners.
• Support global food programs that include U.S. dairy products and products made with U.S. dairy ingredients to meet nutritional needs.

Platform Priority 2: Opening and Securing Access to International Markets

Members seek productive trade agreements, diminished non-tariff barriers and the end to protectionist attempts to claw back commonly used cheese names so the U.S. can sell safe, high-quality dairy products around the world.

Focus areas here include:

• Secure new trade agreements in Southeast Asia, Middle East-North African (MENA) nations and Latin America.
• Pursue a targeted dairy agreement with the European Union.
• Enforce and update USMCA for fair dairy market access, including resolution of tariff-rate quota conflict between the U.S. and Canada and maintaining productive trade policies with Mexico.
• Advance global acceptance of American food safety compliance and standardization for dairy plant and product registrations.
• Protect common food names in all trade agreements.
• Support U.S. food safety resources and a robust regulatory environment, including inspections, which maintain the unparalleled quality and safety reputation that U.S. dairy products enjoy worldwide.

Platform Priority 3: Empowering Dairy Manufacturers for Export Success

WCMA members desire export assistance for manufacturers large and small.

Focus areas here include:
• Expand dairy trade promotion programs like USDA’s Market Access Program (MAP), Foreign Market
Development (FMD) and others.
• Support export readiness for smaller dairy businesses at the federal and state levels.
• Simplify federal trade grant application processes.

WCMA’s focused trade priorities provide a clear roadmap in today’s volatile trade times. And the opportunity is great: Dr. Andy Novakovic reported in the July 2025 Hoard’s Dairyman that 5% of U.S. milk fat and 22% of U.S. skim milk solids were exported in 2024. Strong sales for cheese, butter and dairy powders abroad can power U.S. dairy growth for decades to come.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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