The United States is set to ban a range of Canadian products, including alcoholic drinks, dairy goods and motor vehicles, as tensions between the two countries escalate in their months-long trade war.
US President Donald Trump announced the new restrictions in a series of executive orders on Tuesday, accusing Canada of “discriminating” against American businesses. The import ban is due to take effect on September 29.
The move comes as Canada introduced retaliatory tariffs on US goods. Canadian Prime Minister Mark Carney said in a video address on Tuesday that his country’s efforts to reduce its dependence on the US as its biggest trading partner “will come at a cost”.
Despite the escalating dispute, officials from both countries have said they want to reach a trade agreement. However, no new negotiations have been scheduled since talks broke down in late August.
The latest restrictions add to a trade conflict between two countries that have traditionally been close allies and major trading partners.
The US is Canada’s largest trading partner, with more than two-thirds of Canadian exports generally going south of the border. Canada, meanwhile, is the US’s second-largest trading partner after Mexico, although American exports are more widely spread across different markets.
Businesses on both sides of the border have warned about the impact of the trade war, with concerns that higher tariffs could push up prices while reducing customer demand.
Last month, the White House imposed 50% tariffs on around US$20 billion (£14.8 billion) worth of Canadian goods after several rounds of negotiations failed.
The tariffs affected industries including Canadian furniture and wine, as well as businesses involved in sporting and fishing equipment.
Canada responded with matching tariffs on American products, including steel, clothing and furniture. The retaliatory duties came into effect after midnight on Tuesday.
The White House said Canada’s restrictions on the distribution of US goods amounted to discrimination because similar restrictions were not imposed on products from other countries.
The latest US measures target various alcoholic beverages and dairy products, including whey, among other goods.
Trump has also threatened further restrictions. On Monday, he warned Canadian aircraft manufacturer Bombardier that it would no longer be able to sell its products in the US unless it moved manufacturing operations there.
Trump has long argued that tariffs can help reduce trade imbalances between the US and other countries. However, his broad tariff strategy has created tensions with several traditional American allies.
The dispute has increasingly spilled beyond trade. In August, Trump ordered Lake Ontario to be renamed “Lake America”, triggering backlash from Canadians and some Americans.
