US-Canada trade war escalates as Washington bans Canadian alcohol, bikes, dairy

Date:

he United States will ban imports of several Canadian products from September 29 after Ottawa imposed fresh retaliatory tariffs on US goods.

Web Desk: The US-Canada trade war has escalated sharply, with Washington announcing a ban on a broad range of Canadian alcoholic beverages, motorcycles and dairy products from September 29, adding further pressure to already strained relations between the two longtime trading partners.

The latest US measures came after Canada’s retaliatory tariffs on American goods took effect on Tuesday. Ottawa’s counter-tariffs followed a new round of US tariffs imposed on roughly $20 billion worth of Canadian goods last month.

US announces new Canadian import bans

The US measures target a wide range of Canadian alcoholic beverages, including beer and various wines as well as whisky, bourbon, rum, vodka, vermouth, tequila, mezcal and brandy.

The dairy-related restrictions cover products including whey protein, invert molasses, cane molasses and non-alcoholic beer, according to notices published by the White House.

Some cheese products have instead been placed under a 50% tariff rather than being banned outright. Additional products, including certain paper, aluminium, wood, furniture and lighting goods, have also been added to the tariff list.

Canada retaliates with fresh tariffs

Canada’s latest countermeasures cover about $20 billion of US goods, with tariffs ranging from 15% to 50%.

The measures target products including steel, furniture, clothing and electronics. Canadian officials said the tariffs were designed to put economic and political pressure on Washington following the latest US trade actions.

Canadian Prime Minister Mark Carney said Ottawa had the capacity to reduce its dependence on the US market.

“We have everything we need to pivot and prosper,” Carney said in a video message after the Canadian tariffs took effect.

He acknowledged that such a shift would carry economic costs but argued that remaining dependent on the existing trade relationship could carry greater risks.

Washington keeps pressure on Canadian trade

The latest measures come amid increasingly hostile rhetoric between US President Donald Trump and Canadian officials.

A US official said Trump’s existing threat to increase tariffs on Canadian automobiles from 25% to 50% from January 1 remains in place.

Trump has also targeted Canadian aircraft manufacturer Bombardier, saying the company would not be allowed to sell its planes in the US unless it begins manufacturing them domestically.

Fears of a wider trade conflict

The escalating measures have raised concerns about the future of the US-Mexico-Canada Agreement (USMCA), the free-trade framework that replaced NAFTA and has supported trade across North America for decades.

Michael Harvey of the Canadian Agri-Food Trade Alliance warned of the possibility of an “escalatory spiral” while acknowledging Ottawa’s need to create leverage in negotiations.

Canada remains heavily dependent on the US market. Government data cited by Reuters shows that almost 68% of Canada’s total exports this year have gone to the United States, while about 80% of those exports moved duty-free under USMCA exemptions.

The growing trade confrontation could therefore have consequences for businesses, consumers, investment and economic growth on both sides of the border.

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