"Canada does not accept the contention that Canada's dairy policies are the cause of financial loss for dairy farmers in the U.S.", Ambassador David MacNaughton said in rebuttal to President Trump's surprise criticism on Tuesday.
The problem for Canadian authorities trying to anticipate US demands is that the Trump administration, on this as in other matters, is sharply divided between warring factions: hardline economic nationalists like Steve Bannon, the president's chief strategist, or Peter Navarro, his director of trade policy; versus more mainstream figures like Gary Cohn, his chief economic adviser.
Tensions have continued to rise between farmers and politicians in the United States and Canada since Grassland in Greenwood, Wisconsin, blamed the Canadian policy change for forcing them to cut ties with dairy farmers earlier this month.
Speaking in Wisconsin on Tuesday, Trump singled out Canada's treatment of USA dairy products as an example of unfair trade practices.
Nova Scotia Premier Stephen McNeil said the Atlantic provinces have built a good trading relationship with the New England states and he expects that will continue despite some of the "noise" coming from south of the border.
"In Canada, supply management is literally about matching supply with demand, and for us that avoids over production and it reduces the impact of the devastating market fluctuations that we do see right around the world, including in the U.S." said Weins. Blaney says it's important to preserve the system to protect consumers from the possibility of a new dairy tax.
François Dumontier, a spokesperson for Les Producteurs de lait du Québec, says that while Trump condemned the supply management system on Tuesday, he may have actually been talking about a separate issue.
Canada also imposes import tariffs on ultra-filtered milk, a protein liquid concentrate used to make cheese.
He attached a February 2017 dairy outlook from the U.S. Department of Agriculture to his letter that he said indicates the "poor results" in the American dairy sector "are due to U.S. and global overproduction".
Trump's comments came shortly after he received a letter from Gov. Scott Walker and New York Governor Andrew Cuomo, who urged the president to take action after Canada's sudden change in dairy pricing policy resulted in almost 100 Wisconsin dairy farms being dropped from their suppliers.
President Trump called what's happened to Wisconsin dairy farmers "very unfair" in his visit to Snap-On Tools in Kenosha Tuesday.
At any rate, this relatively obscure corner of the dairy industry has lately caught the attention of USA politicians, notably one Donald J. Trump.
The surprise tongue-lashing represents some of the new administration strongest anti-Canada rhetoric thus far, and a significant departure from the relatively warm reception Prime Minister Justin Trudeau received on his first meeting with Trump in the US capitol.
Trump is dead serious about doing this, having recently called out Canada for the first time publicly for gaming the system when it comes to dairy trade with America.
The senator said the Central New York business could be severely hurt by Canadian rules limiting the import of American dairy used in the manufacture of cheese. About 70 dairy producers in both USA states are affected.
"I'm not saying we'll have another great depression, but this is surely not going to be helpful to economic growth and to prosperity in the world".
"We didn't think they would go through with it, at the end of the day it was just a campaign promise", Schumer said. Commerce Secretary Wilbur Ross has blamed the Senate for delaying the confirmation of Trump's USA trade representative. "So if you're renegotiating trade agreements like NAFTA, then you're looking at renegotiating everything".
"NAFTA has been very, very bad for our country".