US Escalates Canada Trade War With Alcohol, Dairy and Motorcycle Import Bans

The United States has sharply escalated its trade dispute with Canada, announcing import bans on a wide range of Canadian alcoholic beverages, motorcycles and dairy products starting September 29. The move follows Canada’s retaliatory tariffs on around $20 billion of U.S. goods, which took effect Tuesday after negotiations between the two longtime allies broke down.

The latest U.S. measures cover Canadian beer, wine, whisky, vodka, rum, brandy and other alcoholic products, along with whey protein, molasses and non-alcoholic beer. Various cheese products will face a 50% tariff rather than an outright ban, while additional duties will affect Canadian paper, aluminum, wood, furniture and lighting products. Washington also reiterated a threat to raise tariffs on Canadian automobiles from 25% to 50% from January 1.

Canada’s Prime Minister Mark Carney said the country must reduce its dependence on the United States, warning that remaining dependent would carry a greater cost. The escalating measures have raised concerns over the future of the U.S.-Mexico-Canada trade agreement and the stability of deeply integrated North American supply chains. Canadian officials say they remain in talks with U.S. representatives, but the widening dispute risks putting further pressure on businesses, farmers and consumers in both countries.

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