The United States has imposed an import ban on some Canadian products, including dairy goods, alcohol and motorcycles, escalating the trade dispute between the two North American neighbours.
The ban took effect at 12:01 a.m. Tuesday, according to a notice issued by U.S. Customs and Border Protection.
Products affected include whey protein, molasses, non-alcoholic beer, wine, vermouth and various types of liquor.
The move comes on top of 50 per cent tariffs imposed by President Donald Trump on about five per cent of Canadian goods last month.
Canada responded by imposing matching tariffs on a range of US imports.
Stephen Brown, chief North American economist at Capital Economics, said the latest import ban covers only about 0.25 per cent of Canada’s exports to the US.
He said the measure would have little impact on either economy but could make it harder for both countries to resolve their trade dispute.
The ongoing tensions have also put the future of the US-Mexico-Canada Agreement (USMCA) at risk, with negotiations between Washington and Ottawa lagging behind US-Mexico talks.
Canada is the United States’ second-largest trading partner after Mexico and its biggest supplier of energy imports, including crude oil, natural gas and electricity.
About 72 per cent of Canada’s exports went to the US last year, while nearly half of its imports came from the United States.
The trade dispute has also affected industries that rely heavily on cross-border trade, including automotive suppliers, aluminium producers, paper mills and restaurants.
Trump has accused Canada of treating US farmers and businesses unfairly, while Canadian officials have rejected some of Washington’s claims.
On Monday, Trump said Canada needed to “treat our country with respect” and predicted that Ottawa would return to Washington within weeks to negotiate a tariff deal.
US Trade Representative Jamieson Greer, however, said there was “no urgency” on the US side to reach an agreement.
The latest import ban is part of a series of retaliatory measures between the two countries that began after Trump returned to office.
The administration initially imposed tariffs on Canadian goods, citing concerns over fentanyl trafficking, before exempting most products covered by the USMCA.
However, tariffs remain on major Canadian exports such as cars, steel and aluminium.
The latest escalation followed the collapse of trade talks between Washington and Ottawa in August, after both sides had appeared close to reaching an agreement.
Canadian Prime Minister Mark Carney has said the USMCA remains in force, but argued that the agreement is not being fully respected.
The new US restrictions have added further uncertainty to the economic relationship between the two long-standing trading partners.
