WASHINGTON, Sep 09 (Alliance News): The United States has announced a broad ban on imports of Canadian alcoholic beverages, motorcycles and certain dairy products, further escalating the trade dispute between the two longtime allies.
The new import restrictions will take effect on September 29 and were published on the White House website after Canada imposed retaliatory tariffs on US goods earlier Tuesday.
The Canadian measures followed US tariffs of 50% on around $20 billion worth of Canadian products imposed last month after several rounds of trade negotiations failed to produce an agreement.
The escalating dispute has deepened tensions between Washington and Ottawa and raised fresh concerns about the future of the United States-Mexico-Canada Agreement (USMCA), which has supported trade across North America for decades.
Canadian Prime Minister Mark Carney said Canada had the ability to reduce its dependence on the United States, although he acknowledged that shifting trade ties would come with costs.
“We have everything we need to pivot and prosper,” Carney said in a video message.
The US import bans cover a wide range of alcoholic products, including beer, wine, whisky, bourbon, rum, vodka, vermouth, tequila, mezcal and brandy.
The dairy-related restrictions include whey protein, invert molasses, cane molasses and non-alcoholic beer, according to notices published by the White House.
Several cheese products were also added to a list subject to a 50% tariff rather than an outright ban.
Other products, including paper, aluminium, wood, furniture and lighting goods, were also included in the tariff measures.
A US official said President Donald Trump’s existing threat to increase tariffs on Canadian automobiles from 25% to 50% from January 1 remained in place.
The official added that US Trade Representative Jamieson Greer had spoken with Canadian Minister Dominic LeBlanc, who is responsible for bilateral US trade relations, and that further discussions were expected in the coming days.
LeBlanc criticised the latest US measures and said Canada’s priority remained protecting workers, farmers, families and businesses from what he described as unjustified US actions.
Ottawa strikes back
Canada’s retaliatory tariffs cover about $20 billion worth of US goods, with duties ranging from 15% to 50%.
The measures target products including steel, furniture, clothing and electronics and are expected to affect industries in several competitive US states, including Michigan and Ohio, ahead of the November midterm elections.
Although the tariffs cover a relatively small portion of total trade between the two countries, analysts have warned that continued escalation could destabilise the USMCA.
The agreement has played a central role in supporting economic ties between the United States, Canada and Mexico since replacing the North American Free Trade Agreement (NAFTA).
Canadian officials said the counter-tariffs were intended to create economic and political pressure on Washington.
Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance, warned that the dispute could develop into an “escalatory spiral”.
Trump has also increased his criticism of Canada in recent days.
On Monday, he threatened to block Canadian aircraft manufacturer Bombardier from selling planes in the United States unless the company began manufacturing in the country.
He has also repeatedly suggested that Canada should become the 51st US state and recently shared a map of North America displaying Canada and Mexico under the US flag.
On Tuesday, Trump directed the General Services Administration to coordinate with the US Trade Representative to remove Canadian-origin products from federal procurement schedules unless Canada restores what Washington considers fair treatment for American farmers and companies.
Multiple sectors affected
US tariffs imposed last month targeted a range of Canadian products, including wine, furniture, dairy goods, cement, clothing, fishing equipment and hockey products.
The measures cover about $20 billion, or around 5%, of Canadian exports to the United States.
Sapporo, which owns Ontario-based Sleeman Breweries, said it was considering shifting a limited amount of non-alcoholic beverage production from Canada to the United States because of tariff risks, although no final decision had been made.
Canada has sent nearly 68% of its total exports to the United States this year, according to Canadian and US government data. Around 80% of those exports moved duty-free under USMCA exemptions.
The trade dispute has raised concerns over investment and economic growth in Canada, which is confronting a prolonged confrontation with an economy around 13 times larger.
Political analysts say Prime Minister Carney currently enjoys broad public support, but warn that the economic consequences of the trade dispute could put that support under pressure.
Trump also threatened last month to increase US tariffs on Canadian cars, trucks and auto parts to 50% from January 1.
