U.S. to ban Canadian dairy products, alcohol and motorcycles as trade war escalates

The trade rupture between the United States and Canada is widening. The White House said Tuesday that Washington will ban Canadian dairy products, most alcoholic beverages and motorcycles in three weeks.

The move follows Canada’s retaliatory tariffs on $20 billion in U.S. products. President Donald Trump also directed the U.S. General Services Administration to declare Canadian goods ineligible for major long-term government contracts until Canada allows what he called “full and fair reciprocity” for U.S. products.

Prime Minister Mark Carney said Canada would accelerate efforts to reduce its dependence on its southern neighbor. “It is about making sure that no country can take us hostage. And that we can live the way we want to live,” he said.

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Full and fair reciprocity.

The dispute has unsettled one of the world’s closest relationships. On August 22, the United States imposed 50% tariffs on about 5% of Canadian imports, saying Canada had treated U.S. dairy, alcohol and automotive industries unfairly. The countries have long competed over trade, including Canada’s dairy market and subsidies for softwood lumber, but had remained close allies.

The relationship has deteriorated rapidly under Trump. Some Canadian provinces have already banned the sale of U.S. alcoholic products, prompting Tuesday’s retaliation. Canada is also examining closer ties with the European Union, potentially short of membership. Options include expanding existing agreements, negotiating a new treaty or creating other forms of cooperation. No model has been selected, and consultations with provinces, territories and labor groups are underway.

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It is about making sure that no country can take us hostage. And that we can live the way we want to live.