US President Donald Trump announced a ban on imports of Canadian alcoholic spirits, dairy goods and motor vehicles in a series of executive orders on Tuesday, escalating a trade dispute between two deeply connected economies. The ban is due to start on 29 September.
The White House said the measures would cover various alcoholic drinks and dairy products including whey. It has not set out the full range of products that will be included in the import ban beyond the confirmed categories.
The action follows a previous round of US measures. Last month, the White House imposed 50% tariffs on around $20bn of Canadian goods, affecting furniture and wine industries as well as businesses selling sporting and fishing equipment.
Canada's response has now begun. Dollar-for-dollar retaliatory tariffs on US products including steel, clothing and furniture came into force after midnight on Tuesday. The two governments are therefore applying different tools at the same time: Canadian counter-duties raise the cost of specified US goods, while the planned US measure would stop imports of named Canadian product categories.
The White House said Canada is "discriminating" against US businesses by restricting the distribution of US goods while not doing the same to such products from other countries.
The dispute matters because trade runs heavily in both directions. The US is Canada's largest trading partner, generally taking more than two-thirds of Canada's total exports. Canada is the US's second-largest trading partner, after Mexico.
Trump also increased pressure on an individual Canadian manufacturer on Monday, warning aircraft company Bombardier that it would no longer be able to sell its products in the US unless it moves manufacturing there.
Both US and Canadian officials have said they want a trade deal. Yet no fresh talks have been scheduled since negotiations collapsed in late August. The timing and conditions for any resumption remain unknown.
Canadian Prime Minister Mark Carney said Canada's pivot away from the US as its largest trading partner "will come at a cost". Neither government has set out specific projections for the economic effects of the new measures, and it remains unclear whether either side plans further escalation.
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