Trade Dispute: US Bans Imports of Canadian Dairy Products and Alcohol

The United States has announced an import ban on Canadian dairy products, most alcoholic drinks, and motorcycles, escalating a trade dispute with its northern neighbour.

The measures are due to take effect in three weeks. The announcement came on the same day that Canada’s retaliatory tariffs on US imports entered into force. President Donald Trump had already said Canadian companies would be denied access to US government procurement. In a post on his online platform, he instructed US agencies to remove Canadian-origin products from procurement lists used for goods and services bought through framework agreements.

Trump linked the instruction to a demand that US companies, including dairy farmers, receive equivalent access to the Canadian market. He has repeatedly argued that the United States faces a trade imbalance with Canada, using the same argument when imposing tariffs on other countries.

Trade talks between Washington and Ottawa recently failed. The United States then imposed 50% tariffs in August on about $20 billion worth of Canadian goods, including hockey sticks, furniture, honey, and wine. Canada responded with tariffs covering steel and aluminium, household appliances, agricultural equipment, pulp and paper, and electronics.

Trump also said on Monday that the United States would prohibit Canadian aircraft maker Bombardier from selling its products in the country unless it produced there. He separately signed an order seeking to rename Lake Ontario the “Lake America.”