The United States has announced an import ban on a range of Canadian products, including alcoholic spirits, dairy goods and motorbikes, as Canada’s retaliatory tariffs on US products came into effect.
US President Donald Trump issued a series of executive orders on Tuesday, accusing Canada of “discriminating” against US businesses. The new import restrictions will take effect on 29 September, reports BBC.
Earlier the same day, Canadian Prime Minister Mark Carney warned that his country’s efforts to reduce its dependence on the US as its biggest trading partner “will come at a cost”.
Both countries have expressed interest in reaching a new trade agreement, but no fresh negotiations have been scheduled since talks broke down in late August. The BBC has contacted Carney’s office for comment.
The latest US measures mark another escalation in the months-long trade dispute between the two traditionally close allies and major trading partners.
More than two-thirds of Canada’s exports typically go to the US, while Canada ranks as the US’s second-largest trading partner after Mexico. However, American exports are considerably more diversified.
Businesses on both sides of the border have warned about the economic impact of the dispute, with many expecting higher prices and fewer customers.
Last month, the White House imposed 50 per cent tariffs on around $20 billion (£14.8billion) worth of Canadian goods following several failed rounds of negotiations.
The measures affected industries including furniture and wine, as well as some businesses involved in sporting and fishing equipment.
Canada responded with matching tariffs on US products, including steel, clothing and furniture. Those counter-tariffs took effect after midnight on Tuesday.
The White House said Canada was “discriminating” against US businesses by restricting American goods while allowing similar products from other countries into its market.
Under the latest measures, some Canadian products, including whey and non-alcoholic beer, will be barred entirely from entering the US. Import duties on other products, including certain cheeses and motorboats, have also been increased.
The Canadian products facing an outright US import ban include: Dairy products such as whey, Cane molasses , Non-alcoholic beer , A wide range of wine, rum and vodka products, Beer made from malt, Motorbikes, including mopeds
Products facing higher US import duties include: Various types of cheese , Raw hides and skins , Paper , Some furniture and mattresses ,Some metals, including aluminium and iron, Motorboats , Golf carts, Fishing rod parts and accessories, Switchboards
Trump on Monday also signalled further trade restrictions, warning Canadian aircraft manufacturer Bombardier that it would lose access to the US market unless it shifted manufacturing to the US.
Trump has repeatedly argued that tariffs can help reduce trade imbalances with other countries. However, his broad tariff measures have strained relations with many of the US’s traditional allies.
In Canada, some consumers have launched a large-scale boycott of American products, particularly alcohol. Some US alcoholic products have disappeared from Canadian shop shelves since Trump began his global tariff campaign last year.
Deborah Elms, a trade expert at the Hinrich Foundation, told the BBC that the import ban could have a “strong” impact on Canadian companies that rely on US buyers. However, initial estimates suggest the measures will have a “modest impact” on around $1bn worth of goods.
Elms said Canada would likely “hold course for now” while adjusting its business support measures in response to the latest US actions.
“The bigger question is what it will take for the two sides to sit back down together. The language in these proclamations, as an example, isn’t helpful in getting to the negotiating table,” she added.
As Canada’s counter-tariffs took effect on Tuesday, Carney said, “There’s always a cost to action. But it doesn’t come close to the cost of standing still.”
The trade dispute has also extended beyond tariffs. In August, Trump ordered Lake Ontario to be renamed Lake America, prompting an uproar among Canadians and some people in the US.
