The White House has ordered a ban on a range of Canadian products, including spirits, dairy goods and motorbikes, in response to Canada's retaliatory tariffs on American goods. The bans take effect on September 29 and follow a months-long trade war between the two neighbors, with no new talks scheduled since negotiations collapsed in late August.
President Donald Trump signed a series of executive orders on Tuesday banning a slew of Canadian imports, with the measures set to begin on 29 September. The White House said Canada is "discriminating" against the US by restricting American goods while not applying the same restrictions to other countries.
Dairy, alcohol and motorbikes banned outright
Some products, including whey and non-alcoholic beer, are banned from import entirely, while tariffs have been further hiked on others, including cheeses and motorboats. The full list of outright bans covers dairy products like whey, cane molasses, non-alcoholic beer, a long list of wine, rum and vodka products, malt beer, and motorbikes including mopeds. Products facing higher import taxes instead of outright bans include various cheeses, raw hides and skins, paper, some furniture and mattresses, some metals including aluminium and iron, motorboats, golf carts, fishing rod parts, and switchboards.
Economics lecturer Scott French, of the University of New South Wales, said Washington has targeted significant industries for Canada, including its politically influential dairy businesses. Trump has previously argued that Canada's system, which sets production quotas, pricing and import limits on dairy, eggs and poultry, is unreasonable to US farmers.
Retaliation follows last month's 50% tariffs
The new bans follow 50% tariffs the White House imposed last month on around $20bn (£14.8bn) of Canadian goods after talks broke down, hitting Canada's furniture and wine industries as well as some sporting and fishing equipment businesses. Canada responded with dollar-for-dollar tariffs on US goods including steel, clothing and furniture, which came into effect after midnight on Tuesday.
Canadian Prime Minister Mark Carney said in a video address that his country's move away from the US as its largest trading partner will come at a cost. Carney said on Tuesday as Canada's counter-tariffs came into effect: "There's always a cost to action."
Modest impact expected for now, trade expert says
Trade expert Deborah Elms, of the Hinrich Foundation, told the BBC the import ban could have a strong impact on any Canadian business with US buyers, though early estimates show a modest impact affecting around $1bn worth of goods. She said Canada will likely hold course for now and adjust its business support measures to account for the latest US moves.
Both US and Canadian officials have said they would like to strike a trade deal, but no new talks have been scheduled since negotiations collapsed in late August. Generally more than two-thirds of Canada's total exports go to the US, while Canada is the second-largest trading partner of the US after Mexico.
Source: BBC News
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