HS Code:
The goods provided for in subheadings 0401.40.25, 0401.50.25, 0403.90.16, and 2105.00.20 of the Harmonized Tariff Schedule (HTS) of the United States pertain to specific dairy products, including certain types of milk and cream (concentrated or containing added sugar or other sweetening matter) and ice cream. Subheadings 0401.40.25 and 0401.50.25 cover milk and cream with specific fat content, while 0403.90.16 includes other fermented or acidified milk and cream products. Subheading 2105.00.20 refers to ice cream and other edible ice products, whether or not containing cocoa. These products are subject to quantitative limits as specified in U.S. note 9 to this subchapter, which often relates to tariff-rate quotas (TRQs) for dairy imports to protect domestic markets.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United States International Trade Commission (USITC) DataWeb and UN Comtrade Database
$450 million USD
37.5% of total trade of total trade
Increasing
$300 million USD
25.0% of total trade of total trade
Stable
$250 million USD
20.8% of total trade of total trade
Increasing
$100 million USD
8.3% of total trade of total trade
Decreasing
$50 million USD
4.2% of total trade of total trade
Stable
Average Rate
Approximately 10.5% ad valorem
Highest Rate
Up to 20% ad valorem for over-quota imports under TRQ
Lowest Rate
0% under specific trade agreements (e.g., USMCA for Canada and Mexico)
Growing demand for premium and organic dairy products
Increased imports of specialty milk, cream, and ice cream products from countries with strong organic certification systems like New Zealand and the EU
2021-2022
Impact of trade agreements like USMCA
Enhanced market access for Canadian and Mexican dairy products, leading to a rise in trade volumes from these countries
2020-2022
Fluctuating global dairy prices
Price volatility affects import competitiveness, with countries like Australia facing challenges due to higher production costs
2022
A dispute panel under the USMCA ruled in favor of the U.S. in 2022 regarding Canada's dairy TRQ allocation practices, potentially increasing U.S. market access to Canada, which may indirectly affect import patterns to the U.S.
January 2022
Could lead to adjustments in Canadian dairy exports to the U.S., potentially increasing competition in subheadings like 0401.40.25
Ongoing discussions between the EU and U.S. to address dairy tariffs and quotas have led to temporary increases in TRQ allocations for EU dairy products under specific HTS codes.
Mid-2022
Temporary surge in EU imports, particularly under 0403.90.16, impacting market share dynamics
Post-COVID-19 supply chain challenges and geopolitical tensions have disrupted dairy exports, particularly from Australia and New Zealand, due to shipping delays and cost increases.
Throughout 2022
Slight reduction in import volumes from Oceania, with potential shifts toward North American suppliers like Canada