Dairy Product Manufacturers NAICS 3115

Apr 23, 2025 - New Tariffs on Dairy Exports

• Dairy products are among the 740 US farm products now subject to additional import duties after retaliatory measures by China in response to US-imposed tariffs went into effect in March, according to Dairy Reporter. The new tariffs were levied on top of the current applicable tariff rates. A total of 26 dairy products are subject to the 10% levy including milk and cream, butter, buttermilk, yogurt, dairy spreads, fresh and processed cheese, ice cream, casein, and more. The duties apply to products shipped from the US after March 10 and arriving in China after April 12, according to DR. New data from the US Dairy Export Council shows US dairy export value continues to climb this year after posting near-record exports in 2024. In January, US dairy export value rose 20% year over year to a record $714 million, with almost all commodities showing gains.
• The US dairy products industry posted a near-record year for exports in 2024, with foreign trade reaching $8.2 billion – the second-highest total export value ever and a $223 million year-over-year increase, according to new USDA data. Mexico and Canada – tariff targets of the Trump administration – were the top destinations for US dairy exports last year, representing more than 40% of US dairy exports. Mexico and Canada imported record values of dairy at $2.47 billion and $1.14 billion, respectively, according to the USDA. US dairy exports have nearly tripled since the early 2000s and the US became the world’s third-largest dairy product exporter behind New Zealand and the European Union, according to the International Dairy Foods Association. Roughly 18% of all US dairy production is exported. In early February, President Trump agreed to pause tariffs on Canada and Mexico for 30 days, with the deadline looming next month.

• The Food and Drug Administration in December issued a final rule that updates the definition of the nutrient content claim "healthy,” that appears on food labels, Dairy Foods reports. To qualify as "healthy" under the updated definition, food products must contain a certain amount of a food from at least one of the food groups or subgroups outlined by the Dietary Guidelines for Americans including fruits, vegetables, protein foods, dairy, and grains. For the first time, the updated "healthy" claim definition sets certain limits for added sugars. As a result, flavored yogurt that qualified under the FDA’s original “healthy” claim no longer qualifies as “healthy” under the updated definition because it can be high in added sugar. However, plain low-fat or fat-free yogurt does meet the new criteria. Almost two-thirds of people (63%) exceed current dietary recommendations for added sugars, data shows.
• Employment by dairy products manufacturers was relatively unchanged in January compared to a year ago, while average industry wages rose 3.8% over the same period to a new high of $29.23 per hour, according to the latest US Bureau of Labor Statistics data. Industry payrolls have been trending steadily upward since 2021 amid rising producer and retail prices. In February, retail dairy product prices fell 1% from January but were 0.8% higher compared to a year ago, according to the Consumer Price Index calculated by the BLS. Prices for dairy products are predicted to decline by 0.8% this year.