US ban on Canadian alcohol and dairy takes effect as trade war continues

A US ban on several Canadian imports, including alcohol, dairy products and motorcycles, has taken effect as a trade dispute between the two countries continues.

The latest measures from the Trump administration come after Canada imposed tariffs on a range of US goods earlier this month following stalled trade talks.

The new US restrictions affect nearly C$1 billion worth of Canadian liquor exports, as well as whey products used in protein powder. Motorcycle exports will also be affected, although Canada exported only about 5,000 motorcycles to the US in 2025, worth about C$120 million.

Prime Minister Mark Carney has said the impact of the bans on Canada’s economy will be “modest,” but acknowledged that some businesses and industries will be hurt.

US Trade Representative Jamieson Greer recently said President Donald Trump is comfortable with the current relationship with Canada and that there is no urgency to reach a new trade deal.

The US measures were announced by Trump on Sept. 8. He said they were in response to what he called unfair treatment of US products by Canada.

About 93 per cent of Canada’s liquor exports in 2025 went to the US. Industry groups have warned the new restrictions could have a significant impact on Canadian producers.

The US has also imposed 50 per cent tariffs on some Canadian goods, including dairy, alcohol, steel and aluminum, as well as 25 per cent tariffs on Canadian-made cars.

Canada has responded with tariffs of 15 to 50 per cent on more than 700 US products. Several provinces have also stopped selling US liquor.

The ongoing trade dispute has raised concerns about higher prices, uncertainty for businesses and the future of trade between the two countries.

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