A escalating trade dispute between the United States and Canada has landed squarely on the protein aisle, as new tariffs on whey — the cheese byproduct used in protein powders and high-protein foods — squeeze manufacturers and consumers on both sides of the border.
The conflict deepened last month when U.S. President Donald Trump imposed 50% tariffs on $20 billion worth of Canadian goods, citing what his administration called increased discrimination against U.S. commerce. Canada’s dairy sector was a central target, with the U.S. arguing that Canadian import quotas unfairly restrict how much American dairy producers can sell before facing steep tariffs. Trump then applied 50% duties on a range of Canadian dairy products, including whey.
Canada, under Mark Carney, responded with matching dollar-for-dollar tariffs. Trump escalated further by barring American businesses from purchasing a list of Canadian-made goods, including whey protein concentrate, a key ingredient in protein snacks and powders. Canada has separately imposed 50% tariffs on American whey.
Manufacturers Scramble to Stockpile Supply
The fallout is hitting Canadian manufacturers especially hard because the country’s whey processing capacity is limited. Jim McMahon, CEO of British Columbia-based Fit Foods LP, said he sources all of his whey from the United States since the specific processed form he needs is scarce domestically. Canadian dairy farms do produce whey, but the country’s smaller cheese production means fewer facilities exist to convert it into higher-protein forms used in powders and snacks.
Before Canada’s 50% tariffs on U.S. goods took effect on September 8, McMahon said he rushed to stockpile whey, borrowing money to cover roughly six months of inventory along with rush fees and storage costs. “If there’s no tariff relief, it’s devastating for consumers, retailers and us,” McMahon said.
Aaron Skelton, president of the Canadian Health Food Association, which represents small and mid-sized natural and wellness food businesses, said the abrupt policy shifts are outpacing companies’ ability to adapt. “Economic tools can be turned on and off fairly quickly. Supply chains can’t,” Skelton said, adding that member companies are struggling to identify viable substitutes for whey.
Why Substitutes Aren’t a Simple Fix
Switching to alternatives such as pea protein, which isn’t subject to the same 50% tariffs, isn’t straightforward. Doing so can require reformulating entire products and rebuilding supply chains, changes that could themselves push prices higher for consumers.
The price pressure was already building before the latest round of tariffs. U.S. Department of Agriculture data cited by suppliers showed some American whey protein concentrate sellers were sold out for the remainder of the year as early as April, with wholesale prices climbing rapidly and buyers growing anxious about securing enough supply.
Key Figures in the U.S.-Canada Whey Tariff Dispute
By June, whey protein concentrate prices hit a record $13 per pound, according to USDA data — a 250% jump from the same period a year earlier. Prices have since eased to roughly $10 to $11 a pound, though Kathleen Wolfley, vice president at agricultural data provider Ever.Ag Insights, said the full impact hasn’t reached store shelves yet. She expects ready-to-mix and ready-to-eat whey products to see price inflation through the end of the year and into early next year.
Consumers Feel the Squeeze
The price swings are already affecting consumers who rely heavily on whey-based products. Chris Line, a 36-year-old legal counselor in Wisconsin who has used protein shakes and powders as part of a major weight-loss effort, said he typically spends around $35 per protein powder carton, which lasts about a week. Citing reports of shortages and rising prices, Line said he has started building his own stockpile that he estimates could last a few months.
With tariffs still in place on both sides of the border and limited processing alternatives available in Canada, industry representatives say the cost pressure on whey-based protein products is likely to persist in the near term.
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