U.S. bans Canadian dairy, alcohol and motorcycles as trade tensions escalate

The United States has announced a ban on a range of Canadian products, including alcoholic beverages, dairy goods and motorcycles, as retaliatory Canadian tariffs on U.S. imports take effect.

U.S. President Donald Trump issued a series of executive orders on Tuesday, 8 September, accusing Canada of discriminating against American businesses. The new import restrictions will take effect on 29 September.

The banned products include certain dairy goods such as whey, cane molasses, non-alcoholic beer, various wine and spirits products, malt beer and motorcycles, including mopeds.

Other Canadian products will face higher import taxes, including various types of cheese, raw hides and skins, paper, some furniture and mattresses, metals such as aluminium and iron, motorboats, golf carts, fishing equipment and switchboards.

Canada's retaliatory tariffs

The U.S. measures came as Canada imposed retaliatory tariffs on about $27.6 billion worth of U.S. imports. The counter-tariffs took effect on Tuesday and range from 15 per cent to 50 per cent and target sectors including steel and aluminium, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics. 

Canadian Prime Minister Mark Carney said in a video address that the country’s efforts to reduce its reliance on the U.S. as its largest trading partner “will come at a cost”.

The two countries remain major trading partners, but trade negotiations have stalled since talks collapsed in August. Both sides have said they want to reach a deal, although no new negotiations have been scheduled.

The latest measures follow Washington’s decision to impose a 50 per cent tariff on billions of dollars' worth of Canadian goods, adding to pressure on industries including furniture and wine.

Trade tensions deepen

Trump has also threatened further action against Canadian companies. On Monday, he warned aircraft manufacturer Bombardier that it could be barred from selling its products in the U.S. unless it moves more manufacturing to the country. 

The latest restrictions mark a further escalation in the trade dispute between the two neighbouring countries, moving beyond tariffs to outright import bans.

Read more: 

• Canada hits back at U.S. tariffs with $20 billion retaliation and support package
• Canada to hit back with dollar-for-dollar tariffs after U.S. trade talks fail
• Canada's Carney races to avert Trump’s 50% tariffs as trade talks stall

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