The United States has announced new restrictions on Canadian imports, including alcoholic drinks, dairy products and motorbikes, as the trade dispute between the two countries continues to escalate.
In a series of executive orders signed on Tuesday, US President Donald Trump accused Canada of discriminating against American businesses and announced that the new import restrictions would take effect on September 29.
The move came as Canada’s retaliatory tariffs on US goods took effect.
Canadian Prime Minister Mark Carney warned that his country’s efforts to reduce its reliance on the US as its biggest trading partner would come at a cost.
Despite the worsening dispute, officials from both countries have said they remain interested in reaching a trade agreement.
However, no fresh negotiations have been scheduled since talks collapsed in late August.
The latest measures are the newest development in a months-long trade war between the two traditionally close trading partners.
More than two-thirds of Canada’s exports typically go to the US, while Canada is the second-largest trading partner of the United States after Mexico.
Businesses on both sides of the border have raised concerns about the impact of the escalating tariffs and import restrictions, warning that higher costs could eventually lead to increased prices and weaker demand.
The White House last month imposed 50% tariffs on about $20 billion worth of Canadian goods after negotiations broke down.
The duties affected industries including furniture, wine, sporting goods and fishing equipment.
Canada responded with matching tariffs on a range of US products, including steel, clothing and furniture.
Under the latest US measures, some Canadian products will be banned outright, while others will face higher tariffs.
Products facing an import ban include:
– Whey and other dairy products
– Cane molasses
– Non-alcoholic beer
– Certain wine, rum and vodka products
– Malt beer
– Motorbikes and mopeds
Other Canadian products will face increased import duties, including various cheeses, paper, some furniture and mattresses, aluminium and iron products, motorboats, golf carts, fishing equipment and electrical switchboards.
The new restrictions follow Trump’s threat on Monday to stop Canadian aircraft manufacturer Bombardier from selling its planes in the US unless the company moves more production to the country.
Trump has repeatedly argued that tariffs can help address trade imbalances, but his aggressive trade policies have strained relations with several long-standing US allies.
Canada has also seen a consumer backlash against American products, with some Canadians boycotting US goods, including alcohol.
Trade expert Deborah Elms of the Hinrich Foundation said the new restrictions could have a significant effect on Canadian companies that depend on US customers, although early estimates suggest the measures could affect around $1 billion worth of goods.
Elms said Canada was likely to maintain its current approach for now while adjusting support measures for affected businesses.
Carney defended Canada’s response as the counter-tariffs took effect, saying: “There’s always a cost to action. But it doesn’t come close to the cost of standing still.”
The dispute has increasingly spilled beyond trade, with Trump also ordering in August that Lake Ontario be renamed “Lake America”, a move that triggered criticism in Canada and parts of the US.
