The United States has imposed fresh import restrictions on Canadian goods, including alcoholic drinks, dairy products and motorbikes, escalating the months-long trade war between the two neighbours.
The new restrictions, outlined in a series of executive orders signed by President Donald Trump on Tuesday, are due to take effect on 29 September.
The White House accused Canada of “discriminating” against US businesses by restricting American products while allowing similar goods from other countries to enter its market.
Some Canadian products, including whey and non-alcoholic beer, have been banned from entering the US altogether, while import taxes have been increased on other goods such as cheese, motorboats and certain metals.
The banned products include dairy goods such as whey, cane molasses, non-alcoholic beer, several wine, rum and vodka products, malt beer and motorbikes, including mopeds.
Products facing higher import taxes include various cheeses, raw hides and skins, paper, some furniture and mattresses, aluminium and iron products, motorboats, golf carts, fishing rod parts and accessories, and switchboards.
The latest US measures came as Canada’s retaliatory tariffs on American goods took effect after midnight on Tuesday.
Canadian Prime Minister Mark Carney defended Ottawa’s response, warning that resisting US trade pressure would also carry consequences.
“There’s always a cost to action. But it doesn’t come close to the cost of standing still,” Carney said in a video address.
The escalating measures come after the White House last month imposed 50% tariffs on about $20bn (£14.8bn) worth of Canadian goods following the collapse of several rounds of trade negotiations.
Canada responded with dollar-for-dollar tariffs on US products including steel, clothing and furniture.
The trade dispute has placed businesses on both sides of the border under growing pressure, with concerns that higher costs and weaker consumer demand could affect prices and sales.
Economics lecturer Scott French of the University of New South Wales said Washington had targeted “significant industries” in Canada, including the country’s politically influential dairy sector.
Trump has repeatedly criticised Canada’s dairy system, which includes production quotas, regulated pricing and import restrictions covering dairy, eggs and poultry, arguing that it disadvantages US farmers.
French warned that the latest restrictions would increase pressure on Canadian leaders while making negotiations between the two countries more difficult. “The trade war will be ‘costly for both sides due to the historical level of integration of the North American economy’,” he said, adding that consumers on both sides would become “the biggest losers.”
Trade expert Deborah Elms of the Hinrich Foundation said the import ban could have a “strong” effect on Canadian businesses that depend on US buyers, although early estimates suggested the measures would affect about $1bn worth of goods.
Canada is likely to “hold course for now” while adjusting support measures for affected businesses. “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.”
Carney has warned that Canada’s efforts to reduce its dependence on the US as its largest trading partner “will come at a cost.”
More than two-thirds of Canada’s total exports typically go to the United States, making the neighbouring country a crucial market for Canadian businesses.
The US and Canada have historically maintained close economic and political ties, with each country serving as a major trading partner for the other. But months of escalating tariffs and retaliatory measures have strained the relationship.
Tensions have also spread beyond trade. Trump recently ordered that Lake Ontario be renamed Lake America, a move that triggered backlash in Canada and criticism from some people in the United States.
Erizia Rubyjeana
Follow us on:
