U.S. to ban Canadian dairy products, motorcycles and most alcohol imports

The trade dispute between the United States and Canada has escalated into bans on dairy products, most alcoholic beverages and motorcycles from Canada. The White House said the restrictions would take effect in three weeks.

The announcement followed Canada’s decision to impose retaliatory tariffs on $20 billion worth of U.S. imports. President Donald Trump also directed the General Services Administration to make Canadian products ineligible for large, long-term U.S. government contracts until Canada allows “full and fair reciprocity” for American products.

Prime Minister Mark Carney said Canada’s response was intended to make the country more independent. “It’s about ensuring that no country can hold us hostage. And that we can live how we want to live,” he said. He acknowledged that the measures would cause short-term pain but argued they would push Canada to move faster on investment, infrastructure and trade diversification.

“

Full and fair reciprocity

The rupture has unsettled a relationship between longtime allies. Washington imposed 50% tariffs on about 5% of Canadian imports on Aug. 22, citing what it described as unfair treatment of the U.S. dairy, alcohol and auto industries. Canadian provinces later banned the sale of some U.S. alcoholic products, prompting Tuesday’s U.S. ban.

Canada is also examining closer ties with the European Union, potentially through expanded existing agreements, a new treaty or other cooperation short of membership. A Canadian official familiar with the discussions said consultations were under way with provinces, territories and labour groups, but no model had been chosen. The official spoke anonymously because they were not authorised to discuss the talks publicly.

“

It’s about ensuring that no country can hold us hostage. And that we can live how we want to live.