US-Canada trade dispute escalates with new import bans and tariffs

The United States and Canada have escalated their trade dispute, with Washington announcing import bans on Canadian alcohol, motorcycles and specified dairy products from 29 September.

The measures, published on the White House website and reported by France 24, follow Canada’s retaliatory tariffs on about US$20 billion of US goods. Ottawa’s duties range from 15% to 50% and cover products including steel, furniture, clothing and electronics.

The US bans appear to cover most Canadian alcoholic beverages, including beer, wine, whisky, bourbon, rum, vodka, tequila, mezcal and brandy. The dairy-related measures include whey protein, invert molasses, cane molasses and non-alcoholic beer. Some cheese products face a 50% tariff rather than an outright ban.

The United States has also added Canadian paper, aluminium, wood, furniture, lighting and other products to its tariff list. A threatened increase in tariffs on Canadian autos from 25% to 50% on 1 January remains a future measure, according to a US official, rather than an implemented policy.

The dispute follows US tariffs imposed last month on about US$20 billion of Canadian goods, including wine, furniture, dairy, cement, clothing, fishing rods and hockey equipment. Further discussions between US and Canadian trade officials are expected.

The escalation has strained relations between the longtime allies and raised concerns about the future of the US-Mexico-Canada Agreement, which has underpinned North American trade for decades. Canadian Prime Minister Mark Carney has argued for reducing the country’s reliance on the United States.