WASHINGTON, Sept. 8 (Reuters) – The United States on Tuesday banned the importation of a wide range of alcoholic beverages, motorcycles and Canadian dairy products, dramatically intensifying a trade dispute that was already quite heated.
The import bans, which take effect on Sept. 29 and were published on the White House website, occurred after Canada’s own retaliatory tariffs on American goods took effect after midnight on Tuesday.
Those Canadian tariffs, in turn, came in response to the 50% tariffs that the United States imposed on about US$20 billion in Canadian products last month, after several rounds of negotiations failed.
The impasse widened the split among longtime allies, who blamed each other for the failure of talks, prompting Canadian Prime Minister Mark Carney to call for an even greater distance from the United States’ largest trading partner and raising doubts about the viability of the United States–Mexico–Canada Agreement (USMCA).
“We have everything we need to change course and prosper,” Carney said on Tuesday in a video posted on YouTube.
“This realignment will come at a cost. There is always a cost to action. But it is not nearly as costly as standing still,” he said.
The U.S. bans appear to cover most alcoholic products, including beer and several types of wine, whiskey, bourbon, rum, vodka, vermouth, tequila, mezcal and cognac. The dairy ban covers whey protein, inverted molasses, cane molasses and non-alcoholic beer, according to announcements on the White House website.
In addition to the import bans, several cheese products were added to a list of products subject to a 50% tariff but not completely banned. Some paper, aluminum, wood, furniture, lighting and other products were also added to the list.
A U.S. official said that the president Donald Trump’s pre-existing threat to raise tariffs on Canadian cars from 25% to 50% starting January 1 remains in effect. The official added that the U.S. Trade Representative, Jamieson Greer, had spoken with Dominic LeBlanc, the Canadian minister responsible for bilateral trade with the United States, in the last two days, and that the two were expected to speak again in the coming days to see if there was an alternative path for the two countries.
In a post on social media on Tuesday night, LeBlanc criticized the latest U.S. measures and said he was in contact with Greer about a way forward.
“As has been the case for the last 18 months, our top priority remains protecting and supporting Canadian workers, farmers, families and businesses against these unjust actions,” he wrote.
OTTAWA RESPONDS
Ottawa’s retaliatory measures, which in turn provoked Washington’s response on Tuesday night, were designed to exert economic and political pressure on Washington, government officials said.
These retaliatory tariffs cover about US$20 billion in American products, with rates ranging from 15% to 50% on items from steel and furniture to clothing and electronics, and are expected to affect sectors in some competitive states, such as Michigan and Ohio, ahead of the U.S. midterm elections in November.
Although the tariffs affect a small share of exports compared with total trade between the United States and Canada, some analysts fear the stalemate could destabilize the US–Mexico–Canada Agreement, the free trade pact that followed NAFTA. Together, they have sustained trade across North America for decades.
“What concerns us is a spiral of escalation,” said Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on bilateral economic relations with the United States.
“But at the same time, we fully understand that the prime minister needs to find areas of influence.”
Trump has been launching several attacks on Canada on Truth Social in recent days.
On Monday, he said the Canadian private jet manufacturer Bombardier would no longer be permitted to sell its aircraft in the United States unless it began manufacturing in the country.
He also shared a North American map covered by the U.S. flag, including Canada and Mexico, and an AI-generated image that reprises a recurring taunt at Carney, calling him “Governor” — a reference to his repeated prodding that Canada should become the 51st state of the United States.
On Tuesday, hours before the latest import bans, Trump instructed the General Services Administration (GSA), the U.S. government agency responsible for providing services to the federal government, to coordinate with the U.S. Trade Representative and “REMOVE Canadian-origin products from the GSA Multiple Award Schedule lists, unless Canada restores full and fair reciprocity for American farmers and businesses.”
