WASHINGTON – The United States has imposed fresh ban on a broad range of Canadian imports, including alcoholic beverages, motorcycles and selected dairy products.
The US intensified an increasingly bitter trade dispute the longtime allies.
The latest measures are scheduled to take effect on September 29 and were announced after Canada introduced its own retaliatory tariffs on US products last Tuesday.
The dispute comes as Trump continues to threaten broader tariffs on Canadian vehicles and automotive parts, potentially raising duties to 50% from January 1. His administration has also taken symbolic steps in the dispute, including an executive order referring to Lake Ontario by the name “Lake America.”
The escalation follows Washington’s decision last month to impose tariffs of up to 50% on roughly $20 billion worth of Canadian goods after several rounds of negotiations failed to produce an agreement. The deteriorating relationship has prompted Canadian Prime Minister Mark Carney to call for greater economic diversification and a reduced reliance on the United States.
“We have everything we need to pivot and prosper,” Carney said in a video message released Tuesday. He acknowledged that moving away from the US market would carry economic costs but argued that remaining dependent on a single trading partner could prove more damaging.
Alcohol and other Canadian goods targeted
The new US restrictions affect a wide range of Canadian alcoholic products, including beer, wine, whisky, bourbon, rum, vodka, vermouth, tequila, mezcal and brandy.
Several other products are also covered by the measures, including whey protein, molasses and non-alcoholic beer. A number of cheese products have instead been placed under a 50% tariff rather than being prohibited from entering the US market.
Additional Canadian exports, including paper, aluminum, wood products, furniture and lighting equipment, have also been added to the list of goods facing higher duties.
A US official said President Donald Trump’s earlier threat to increase tariffs on Canadian automobiles from 25% to 50% beginning January 1 remains in place.
The official also said US Trade Representative Jamieson Greer has been in contact with Canadian Trade Minister Dominic LeBlanc. Further discussions are expected in the coming days as both governments consider whether a way out of the dispute can be found.
Canada responds with retaliatory tariffs
Canada’s countermeasures, which preceded the latest US restrictions, target approximately $20 billion in US exports.
The Canadian tariffs range from 15% to 50% and cover products such as steel, furniture, clothing and electronics. Canadian officials say the measures are intended to increase economic and political pressure on Washington.
Some US industries in politically important states, including Michigan and Ohio, could be affected by the Canadian duties.
Gabriel Brunet, a spokesperson for LeBlanc, said Canadian and US officials remain in contact but that formal trade negotiations are not currently underway.
Concerns grow over North American trade pact
Although the latest measures cover only a fraction of the enormous trade relationship between the two countries, businesses and analysts are increasingly concerned that the dispute could threaten the stability of the United States-Mexico-Canada Agreement, or USMCA.
The trade pact replaced the North American Free Trade Agreement and has played a central role in supporting integrated supply chains and cross-border commerce across North America.
Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on US economic relations, warned that continued escalation could create serious problems.
He said Canadian officials understand the risks of a prolonged confrontation but also recognize the need to create leverage in negotiations with Washington.
Trump steps up criticism of Canada
Trump has continued to criticize Canada publicly as the trade dispute has intensified.
On Monday, he said Canadian aircraft manufacturer Bombardier would face restrictions on selling its planes in the US unless the company expanded manufacturing operations in the country.
Trump also posted an image depicting North America under the US flag and repeated his long-running suggestion that Canada could become the 51st US state. He has frequently referred to Carney as “Governor” in his criticism of the Canadian prime minister.
On Tuesday, Trump instructed the US General Services Administration to work with the US Trade Representative to remove Canadian-origin products from government purchasing schedules unless Canada provides what he described as fair treatment for US farmers and companies.
Trade tensions threaten economic stability
The US tariffs introduced last month targeted a variety of Canadian exports, including wine, furniture, dairy products, cement, clothing, fishing equipment and hockey products. The measures covered approximately $20 billion in goods.
Canada remains heavily dependent on the US market. Government figures indicate that nearly 68% of Canadian exports have gone to the United States this year, with about 80% of those shipments benefiting from duty-free treatment under the USMCA.
However, the latest US tariffs were imposed under a US law that does not provide Canada with the ability to rely on USMCA exemptions, increasing uncertainty for Canadian businesses.
Economists and investors are now watching closely for signs that the dispute could affect investment, economic growth and cross-border supply chains.
The political impact is also becoming an important factor. Carney’s approval rating has risen in recent polling, suggesting that many Canadians currently support his approach to the confrontation with Washington. Whether that support lasts could depend on how quickly higher tariffs begin affecting consumers, businesses and employment.
