The United States banned nearly $1bn worth of Canadian imports early Tuesday, covering alcohol, dairy products and motorcycles. The move punishes Canada for retaliating against earlier US tariffs and further strains an $880bn trade relationship already under pressure from Donald Trump's second-term trade war.
The United States went ahead early Tuesday with a ban on nearly $1bn worth of Canadian imports, targeting alcoholic beverages, dairy products and motorcycles. The ban took effect at 12.01am Eastern time and marks another escalation in Trump's trade war with Canada, a longtime US ally.
Even so, the restriction touches only a fraction of the $880bn in annual two-way trade between the two countries. Trade attorney Patrick Childress, a partner at Holland + Knight and a former US trade official, said the ban would not help ease trade tensions between the two countries.
A tariff fight escalates into a ban
Trump reached back to a Great Depression-era law over the summer to impose 50% tariffs on about $20bn worth of Canadian imports, accusing Canada of discriminating against US dairy, auto and alcohol producers. Canada responded with tariffs of 15%, 25% or 50%, matching US imports dollar for dollar. Trump then moved to ban the list of Canadian products to punish Canada for retaliating.
Childress noted the economic impact should be minimal, since the banned goods already faced the earlier 50% tariff, which was acting as a de facto ban by making importation from Canada uneconomical. Jacob Jensen, director of trade policy at the American Action Forum, calculates the ban covers $967m worth of Canadian imports based on 2025 numbers. Of that total, 87% is alcoholic beverages targeted after some Canadian provinces banned US booze from store shelves.
Also banned are some dairy products, including the milk byproduct whey, extending a long-running dispute over Canada's dairy import quotas. The ban further covers motorcycles: Bombardier Recreational Products confirmed its Can-Am Spyder and Canyon three-wheel motorcycles are excluded from US importation, though the company said the impact would probably not be felt until next year.
USMCA renewal in jeopardy
Jensen expects Canadian exporters and US importers hit by the bans to push trade officials on both sides toward a resolution. The impasse imperils efforts to renew the US-Mexico-Canada Agreement, the North American trade pact Trump pressured Canada and Mexico into accepting during his first term.
Canadian Prime Minister Mark Carney came to power last year on a promise to stand up to Trump. Beyond retaliating against US tariffs, Carney has sought to reduce Canada's reliance on the United States, which last year accounted for more than 70% of Canadian exports. According to the Guardian: "There is now a price to be paid for access to the United States market", Carney said earlier this month. Carney has also embraced the prospect of Canada becoming the European Union's first associate member.
Source: The Guardian
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