Donald Trump's latest tariffs have triggered a trade confrontation with Canada over its politically sacrosanct dairy industry — while closer to home, a White House staffer has been suspended for allegedly betting on the president's own speeches.
Canada's dairy supply management system, in place since the early 1970s, is one of three irritants Trump used to justify a 50% tariff on $20bn worth of Canadian goods that is set to come into effect in August. The US president has called the system, which uses production quotas, set pricing and import quotas on dairy, eggs and poultry, "unreasonable" to American farmers wanting to sell north of the border.
“Trump's tariffs ignite Canada dairy clash while White House staffer accused of betting on speeches”
Quebec Premier Christine Fréchette said on Tuesday that supply management was non-negotiable. US-Canada Trade Minister Dominic LeBlanc last week called it "a cornerstone of Canada's economy and our rural communities" that "ensures that Canadians have access to high-quality dairy products made by Canadian dairy farmers". Farmers have protested with tractors and cattle on Parliament Hill when concessions were mooted.
"It is the most powerful political lobby in the country that stretches across all of the major political parties," said David Clement, a Canadian policy director at the international advocacy group Consumer Choice Center.
Currently, US producers have tariff-free access to only 3.5% of Canada's market, even though Canada bought $1.3bn worth of US dairy in 2025, according to the US Department of Agriculture.
Meanwhile, the White House has been hit by a betting scandal. Gabriel Perez, the president's teleprompter operator, has been placed on unpaid leave after the online prediction market Kalshi alleged he placed bets on what Trump would include in speeches, including the State of the Union, winning more than $100,000. Kalshi, which prohibits insider trading and recently required bettors to disclose their employment, alerted federal regulators. Press secretary Karoline Leavitt called the situation "a disgrace". ABC News reported the allegations last Thursday.
As these disputes unfold, the BBC's Samira Hussain has asked whether US households are really paying 1.5% more because of Trump's tariffs — a question that hangs over an economy now braced for further disruption.