sales

Abbotsford, British Columbia – Every second day, 28,000 litres of raw milk leave Casey Pruim’s farm in Abbotsford in western Canada, entering a distribution system built on the assumption that the milk and the products made from it will have somewhere to go.

While most is consumed in Canada, some had been sold across the border to the United States.

Those sales have largely come to a standstill since US President Donald Trump’s 50 percent tariff on $20bn in Canadian goods, including dairy products, came into effect on August 22.

Pruim, who is also chair of the British Columbia Dairy Association representing about 400 dairy farmers across the province, told Al Jazeera that Canadian farmers do not individually decide which products are exported.

Instead, producers such as Pruim –  whose farm has 330 cows milked three times a day  –  sell into the provincial milk-marketing system, which distributes milk to processors according to demand, including for products exported to the US.

If a processor loses US demand, it may require less milk, with the impact then spread across the provincial pool.

Dylan Kruger, director of public affairs at BC Dairy, told Al Jazeera “there is still considerable uncertainty around the impact of the US tariffs”.

He said it was too early to know how the industry would be impacted or whether milk no longer sold to the US could be sold elsewhere, mitigating financial losses.

But the tariffs and wider trade tensions have already introduced uncertainty and instability for businesses.

“If the processor who’s exporting some of his product to the United States can no longer sell into that market because he’s now priced out of the market with a 50 percent tariff, that’s how it would impact the dairy farm,” Pruim said.

Pruim said if processor demand is squeezed, farmers would be forced to dump the milk. In the worst-case scenario, the herd has to be cut.

“Cows aren’t like a tap; you can’t just turn them on or off,” he said.

His warning captures dairy’s particular vulnerability in a tariff war: Milk is highly perishable, collected on a tight schedule and dependent on processors whose demand can change much faster than farmers can adjust production.

“These tariffs are completely unwarranted,” David Wiens, president of the Dairy Farmers of Canada, told Canada’s CBC News, adding that they would affect “the supply chain, not only in Canada but in the US as well”.

Supply-management system

Dairy trade between Canada and the US has largely operated under a free trade agreement between the US, Mexico and Canada, known as CUSMA in Canada.

Canada manages the supply of dairy, poultry and eggs through a national agricultural policy known as supply management. The system uses production quotas and import controls, including tariffs, to provide farmers with more stable and predictable prices while maintaining domestic supply.

Critics describe the system as protectionist and as a government-backed cartel.

Washington argues that Canada’s supply-management system restricts US dairy exports. Trump posted on Truth Social that “Canada had been ripping off the United States of America for years” and accused it of imposing “ridiculously high tariffs” that made life impossible for US farmers.

Canadian producers reject that argument, saying the existing trade agreement already gives US imports substantial tariff-free access that is not fully utilised.

Canada’s dairy trade deficit with the US has grown significantly since CUSMA came into force on July 1, 2020, according to the Dairy Processors Association of Canada.

In 2020, Canada exported 241.3 million Canadian dollars ($173m) in dairy products to the US and imported 647.4 million Canadian dollars ($462.7m) worth of dairy and dairy products. In 2025, Canadian dairy exports had risen to 308.7 million Canadian dollars ($220.7m) while dairy imports from the US had more than doubled to 1.355 billion Canadian dollars ($968.5m), accounting for 13.8 percent of total value of US dairy exports, according to the association.

Bryan Yu, chief economist at Central 1 credit union, said the immediate shock of losing a major market could be difficult for Canadian producers to absorb because replacement buyers cannot be found quickly.

“There is going to be pain in the near term for a lot of our producers,” Yu told Al Jazeera.

“You really can’t quickly adjust to a 50 percent tariff, because it’s uncharted waters for a lot of industries … and ultimately it shuts [Canadian producers] out, because a lot of them don’t have the margins that they can play with,” he said.

Yu said Canadian consumers might absorb some of the additional supply while exporters search for new markets and higher-value products, but neither adjustment is instantaneous.

“There are global markets as well, especially when you talk about chilled, chilled beef, chilled products and really it’s a question of whether … other types of markets that could be available.”

Canada has also imposed retaliatory tariffs, which came into effect on September 8 and cover $20bn worth of US products.

Dairy products are among the targeted goods. The list includes a 50 percent tariff on milk, cream and whey products and a 25 percent tariff on many cheeses imported from the US.

Canadian Prime Minister Mark Carney has framed Ottawa’s response as both retaliation and an attempt to build greater economic resilience.

Announcing the collapse of the latest negotiations, he said Canada would match Washington’s new tariffs “dollar for dollar” to protect workers, farmers, families and businesses.

But retaliatory measures carry risks of their own.

“Canada’s new retaliatory tariffs will help some industries but hurt most and weaken economic growth across the country by raising costs for producers and consumers,” Oxford Economics said in a report.

For now, geography remains important for perishable goods like dairy products that once moved quickly across the US border and cannot be redirected overnight to a distant market without new buyers, logistics and regulatory approvals.

Ottawa’s Trade Commissioner Service is advising affected companies to check their CUSMA compliance, explore available relief and contact trade commissioners about potential new markets.

Yu predicted that the US and Canada could reach a tariff deal in the following months but said the interim period could bring “higher prices, weaker economic activity and deeper mistrust”.

For Pruim, the uncertainty is as destabilising as the tariff threat itself.

“I think, like [for] any Canadian, it’s disappointing to have these trade talks collapse again and just the uncertainty around it.”

SEOUL, Aug. 27 (UPI) — North Korea on Thursday condemned U.S. approval of a possible $125 million sale of Sidewinder missiles and related equipment to South Korea, warning of a “serious, immediate and powerful response.”

In a statement carried by the North’s official Korean Central News Agency, a Foreign Ministry spokesperson called the proposed sale and other recent U.S. actions “hostile moves adversely affecting the security environment of the DPRK and the regional situation.”

The Democratic People’s Republic of Korea is the official name of North Korea.

The spokesperson cited last week’s U.S. State Department approval of a possible sale of 103 AIM-9X Sidewinder Block II tactical missiles, 10 tactical guidance units and related equipment to South Korea.

The statement also pointed to U.S. approvals this year involving naval helicopters, attack helicopter upgrades and precision-guided munitions.

In May, the State Department approved a possible $3 billion sale of 24 MH-60R multi-mission helicopters and a $1.2 billion upgrade package for South Korea’s AH-64E Apache attack helicopters. It approved a possible $106 million sale of Joint Direct Attack Munition guidance kits and related equipment in June.

The sales are “encouraging the ROK to boost its capability to fight a war,” the spokesperson said, using the official acronym for South Korea.

“Now that the military integration of the U.S. and its allies is being accelerated in the Asia-Pacific region, we cannot overlook the adverse effect of the U.S. sale of its weapons to the ROK on the regional security environment,” the spokesperson said.

The statement also criticized a State Department funding initiative announced last week that would provide up to $2.96 million for projects documenting human rights abuses in North Korea and countering Pyongyang’s propaganda and influence operations.

The spokesperson called the initiative a “human rights smear campaign” aimed at creating instability in North Korea’s political system.

The DPRK “will make a serious, immediate and powerful response to the hostile acts in different spheres,” the spokesperson said.

The statement comes as U.S. President Donald Trump pushes to restart direct diplomacy with North Korean leader Kim Jong Un.

Trump last week abruptly ordered the United States and South Korea to curtail their annual Ulchi Freedom Shield military exercise, citing its cost and saying the drills sent an “inappropriate and hostile” signal to Pyongyang.

North Korea has so far shown little inclination to engage, however. Kim Yo Jong, the sister of Kim Jong Un, said last week that Pyongyang had “no interest” in the reduction of the drills.

“If the U.S. calculates that it can propagate its recent measure as the one of so-called good faith, they will not get desired answer,” she said.

Kim Jong Un led a key ruling party meeting this week but made no mention of Trump’s overtures, according to a report Wednesday by KCNA.

Manchester City‘s position has shifted following Wednesday’s signing of Ayyoub Bouaddi. They have generated 278.5m euros from sales so far, with the departures of players including Savio, Tijjani Reijnders, Rodri, James Trafford, Manuel Akanji and Nathan Ake.

Bouaddi’s arrival takes City’s spending to 273.7m euros, leaving them with a positive transfer balance of 4.8m euros.

Further departures could quickly change the picture again. Tottenham have agreed a loan deal to sign Omar Marmoush, with an obligation to make the move permanent for £60m (58m euros) next summer. That fee would therefore count towards City’s 2027-28 transfer income rather than this season’s figures.

Nico Gonzalez is also expected to leave, while Jack Grealish could yet be another departure before the deadline. Grealish spent last season on loan at Everton, who remain interested, although the winger has viewed Enzo Maresca replacing Pep Guardiola as manager as a fresh start at City. His contract runs until June 2027.

A permanent sale of Gonzalez, and possibly Grealish, could still significantly increase City’s 2026-27 income.

Their ability to sell at such a level is particularly significant given the scale of their midfield rebuild. City have already signed Elliot Anderson from Nottingham Forest for 135m euros. They also remain interested in Chelsea midfielder Enzo Fernandez.