Does the United States Import Milk? Understanding the Dairy Trade

December 3, 2025 •

4 min read

While the United States is the world's second-largest milk producer, the country does import milk and a variety of other dairy products to meet specific consumer demands and supplement domestic supply. This practice, governed by a complex set of regulations and trade policies, plays a small but significant role in the overall U.S. dairy market.

Quick Summary

The United States imports certain milk products, primarily those with high value or specific characteristics, despite being a major producer and exporter of dairy. Stringent regulations, tariff-rate quotas, and strong domestic production limit overall milk imports.

Key Points

Limited Fluid Milk Imports: The U.S. imports very little fluid milk due to high domestic production and protective trade barriers, but it does import significant quantities of other dairy products.
Tariff-Rate Quotas (TRQs): Trade policies use TRQs to limit the volume of dairy imports, applying high tariffs on quantities that exceed the set quotas to protect the domestic dairy industry.
Focus on Processed and Specialty Products: The majority of dairy imports are processed goods like specific cheeses, butter, and milk powders, often from European countries, New Zealand, and Canada, rather than fresh milk.
Strict Regulatory Oversight: All dairy imports are subject to rigorous regulations from the FDA, APHIS, and CBP, which require permits, registration, and health certifications.
Net Exporter Position: Despite importing certain products, the United States maintains a positive dairy trade balance, exporting far more dairy products and ingredients by value than it imports.
Meeting Niche Demand: Imports serve to satisfy specific consumer demands for international cheeses and specialized ingredients used in manufacturing, rather than replacing domestic staple products.

Understanding the US Dairy Trade Dynamic

Despite being a dairy superpower, the U.S. participates in the global dairy trade, which includes importing specific products. The dynamic is shaped by strong domestic production, strategic exports, and targeted imports of specialty goods that complement the domestic market rather than compete directly with fresh milk. While fresh, fluid milk imports are minimal due to logistical challenges and high trade barriers, the import of processed and value-added dairy products is more common.

The Role of Tariff-Rate Quotas (TRQs)

A significant factor limiting overall U.S. dairy imports is the use of tariff-rate quotas (TRQs). These quotas allow for a limited amount of certain dairy products to be imported at a low or zero tariff rate. Once the quota is filled, significantly higher tariffs are applied, effectively discouraging further imports. This protectionist measure is a long-standing component of U.S. trade policy aimed at safeguarding the domestic dairy industry from foreign competition. For many dairy products outside of certain cheeses, these high over-quota tariffs make imports economically unviable for commercial purposes.

Why the United States Imports Dairy Products

Even with high domestic production, several reasons exist for targeted dairy imports:

Specialty Products: Imports often focus on unique or specialty items, such as specific types of cheeses from Europe (e.g., Italy, Netherlands) that are not widely produced domestically. This meets niche consumer demands for international cuisine.
Balancing Market Demands: Importing certain products, like milk powders for specific industrial uses, can help balance market supply and demand. For example, the U.S. imports milk powder from countries like the Netherlands and China.
Global Supply Chain: Imported milk powder and other ingredients are used in the production of various food items, including infant formula, baking mixes, and ready-to-drink beverages.
Fulfillment of Trade Agreements: Despite protective tariffs, trade agreements like the US-Mexico-Canada Agreement (USMCA) mandate certain quota amounts, allowing a controlled volume of dairy products to enter the U.S. market from partner countries.

Key Imported Dairy Products and Countries of Origin

Unlike the misconception of large-scale liquid milk imports, the U.S. primarily imports processed dairy products. The types of products and the key countries supplying them reveal a more nuanced trade relationship. The European Union (EU27) is a significant provider, along with Canada, Mexico, and New Zealand.

Comparison of US Dairy Imports and Exports (2024 Trends)


Feature	US Dairy Imports	US Dairy Exports
Primary Products	Cheese, curd, and butter are major products; milk powders and specialty items are also imported.	Nonfat dry milk, skim milk powder, cheese, and whey proteins are key export products.
Key Destinations/Sources	Sources primarily from the EU27 (47.5% market share), New Zealand, Canada, and Mexico.	Mexico is the largest export market, receiving a large portion of US nonfat dry milk and cheese. Other markets include South Korea, Japan, and the Philippines.
Market Drivers	Demand for domestic specialties, international flavors, and specific food manufacturing inputs.	Competitive global pricing, strong international demand, especially from Mexico and Asia.
Government Regulation	Subject to strict FDA, APHIS, and CBP regulations, including tariff-rate quotas.	Supported by a focus on market access through trade negotiations, although some recent trade tensions have created uncertainty.

Regulations Governing Imports

Importing dairy into the U.S. is a heavily regulated process to ensure public health and industry protection. Key regulatory bodies and requirements include:

Food and Drug Administration (FDA): A permit from the FDA is mandatory for importing milk and cream. Foreign manufacturers must also register with the FDA.
Animal and Plant Health Inspection Service (APHIS): All dairy products are subject to APHIS requirements, particularly concerning animal health risks like foot-and-mouth disease (FMD). Most dairy from FMD-affected regions is restricted.
U.S. Customs and Border Protection (CBP): Administers quota restrictions for various dairy products alongside the USDA.
Prior Notice Filing: Commercial food and beverage imports require filing prior notice with the FDA.

Conclusion

In summary, the United States does import milk, but the nature of this trade is highly specific and tightly controlled. The vast majority of milk consumed in the U.S. is domestically produced, with the country maintaining a strong position as a global dairy powerhouse. Imports consist mainly of high-value, niche products and ingredients, rather than bulk liquid milk, and they operate within a strict regulatory framework of tariffs and quotas designed to support the domestic dairy industry. The trade dynamics are a complex interplay of protective measures, consumer preferences, and global market forces. While domestic farmers face ongoing challenges from market pressures and environmental factors, strategically managed imports and exports help shape a resilient and diverse dairy market. The U.S. dairy industry remains a net exporter, reinforcing its dominant position in the global market.

Frequently Asked Questions

No, the vast majority of milk consumed in the United States is domestically produced. The U.S. is one of the world's largest milk producers and maintains a robust and self-sufficient fluid milk market.

The U.S. imports dairy products to acquire specific, high-value, or specialty items not widely produced domestically, such as certain cheeses. Imports also include processed ingredients like milk powder for use in various food manufacturing processes.

The United States imports dairy products from a variety of countries, with the European Union being a major source. Other key suppliers include New Zealand, Canada, and Mexico.

Yes, the U.S. government uses tariff-rate quotas (TRQs) to limit the amount of certain dairy products that can be imported at low tariff rates. After the quota is met, tariffs become prohibitively high.

Yes, imported milk and dairy products are subject to strict regulations and oversight by agencies like the FDA and APHIS. These measures ensure the safety and quality of all dairy products entering the country.

Imports can add competition, but the limited nature of fluid milk imports and protectionist tariffs on other products means the impact is relatively controlled. The U.S. dairy industry is a significant net exporter, which often has a greater overall impact on the domestic market.

The U.S. primarily imports processed dairy products rather than bulk liquid milk. Examples include specialty cheeses, butters, and milk powders used for manufacturing.