- The US is banning Canadian dairy products, most alcoholic beverages, and motorcycles, as the trade war between the two neighbors escalates.
- The ban will take effect in three weeks and comes after Canada imposed retaliatory tariffs on $20bn in US imports earlier Tuesday.
- Trump also directed the General Services Administration to declare Canadian products ineligible for large US government contracts until 'full and fair reciprocity'.
- Since trade talks collapsed on 21 August, Trump and his administration have imposed additional tariffs and issued threats.
- On 22 August, the US imposed 50% tariffs on about 5% of Canadian imports, charging that Canada had unfairly treated the American dairy, alcoholic beverage, and auto industries.
- Canada responded with dollar-for-dollar retaliatory tariffs on US goods like steel, clothing, and furniture.
- The counter-duties came into effect after midnight on Tuesday.
The U.S. has announced a ban on Canadian dairy products, alcoholic beverages, and motorcycles, set to take effect on September 29. This decision follows Canada’s implementation of retaliatory tariffs on $20 billion worth of U.S. imports, escalating tensions between the two countries.
The ban was confirmed by the White House, which stated that President Donald Trump accused Canada of discriminating against U.S. commerce. In response, Canada’s Prime Minister Mark Carney emphasized the need for Canada to reduce its dependence on the U.S., stating, “It’s about ensuring that no country can hold us hostage.”
The trade conflict intensified after the collapse of negotiations on August 21, leading to the U.S. imposing 50% tariffs on approximately 5% of Canadian imports, particularly targeting the dairy and automotive sectors. These tariffs affect around $20 billion in goods, representing about 6% of the $333.6 billion the U.S. exported to Canada last year.
In retaliation, Canada has enacted dollar-for-dollar tariffs on U.S. goods, including steel and clothing. Carney noted that the pivot away from the U.S. as Canada’s largest trading partner “will come at a cost.” As both nations seek to navigate this trade war, no new talks have been scheduled since the negotiations broke down in late August.
“The ban follows Canada's retaliatory tariffs on $20bn in US goods, which took effect after midnight Tuesday. Trump also ordered Canadian products barred from large US government contracts until 'full and fair reciprocity' is granted.”
The Guardian
BBC
