Politics 5 min read By Bethany Hadley
US bans Canadian alcohol, dairy and motorcycles as trade war escalates
The United States will ban imports of most Canadian alcoholic beverages, some dairy products and motorcycles from Sept. 29, the White House said, after Canada imposed retaliatory tariffs on $20 billion of US goods.
The United States is banning imports of most Canadian alcoholic beverages, along with some dairy products and motorcycles, the White House said on Tuesday, as a trade dispute between the two allies escalates further. The ban takes effect on Sept. 29 and follows retaliatory tariffs that Canada imposed earlier the same day on $20 billion worth of American imports.
The measures mark the latest round in a confrontation that began when US President Donald Trump imposed 50% tariffs on about 5% of Canadian imports on Aug. 22, accusing Canada of unfair treatment of American dairy, alcoholic beverage and auto industries. Trade talks between the two countries collapsed last month, and Washington has since moved to shut Canadian products out of large, long-term US government contracts. The General Services Administration has been directed to declare Canadian goods ineligible for those contracts until Canada allows what the White House called “full and fair reciprocity” for American products.
Canadian Prime Minister Mark Carney defended the retaliation, saying Canada could not allow American goods to enter tariff-free while Canadian companies face US tariffs. He acknowledged the trade actions would cause short-term pain but said they would accelerate Canadian efforts on investment, infrastructure and trade diversification. “It was easy business, but it meant we relied too much on one economic partner,” Carney said. “That time is over.”
The rupture has upended one of the world’s closest economic relationships. More than 70% of Canadian exports still go to the United States, underscoring the scale of the challenge. Carney said Canada’s exports to other countries are rising sharply and are on track to double over the next decade. He also said the fundamental issue in the failed negotiations was that Washington’s cumulative demands revealed a desire to make Canada more reliant on the US, not less. “In too many areas, they wanted dependency, not a true economic partnership,” he said.
The prime minister said Washington sought limits on French-language and cultural protections, influence over future trade deals, and terms that would weaken the auto, steel and forestry sectors. Canada is now exploring deeper ties with the European Union that could stop just short of membership, a Canadian official familiar with the discussions said. Options could include expanding existing agreements, negotiating a new treaty or creating other forms of cooperation. The official said Canada is already consulting provinces, territories and labour groups about what a deeper relationship with the EU could look like, but no model has been chosen.
Carney is due in Strasbourg, France, next week, where he will attend European Commission President Ursula von der Leyen’s State of the European Union address on Sept. 16 and address the European Parliament the following day. The Canadian tariffs hit hundreds of American products, including steel, aluminium, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%. They cover roughly 6% of the $333.6 billion the United States exported to Canada last year.
Trump’s trade war and repeated talk of making Canada the 51st US state have fuelled anger across the country. Canadians have sharply cut travel to the United States and boycotted US goods, moves Carney praised as signs of national resolve. British Columbia Premier David Eby said the province will install new signs at US border crossings reading: “Welcome to British Columbia, Canada. Strong, proud and will NEVER be the 51st state. Sorry!”
Carney came to power in a come-from-behind political victory last year by promising to stand up to Trump. He said Canada’s strategy was about becoming more independent. “It’s about ensuring that no country can hold us hostage. And that we can live how we want to live,” he said. Earlier on Tuesday, a Canadian official said Ottawa did not intend to change course regardless of whether Trump responded with nothing or what the official called a “nuclear response.” The government’s strategy will remain focused on building more at home and diversifying trade abroad, the official said.
