US Expands Canada Tariffs, Imposes Import Bans On Alcohol, Dairy And Motorcycles

The United States has intensified its trade dispute with Canada by announcing additional tariffs and import restrictions on a range of Canadian goods, including alcoholic beverages, dairy products and motorcycles.

US President Donald Trump announced the measures on Tuesday, alleging that Canada was “discriminating in fact against the commerce of the United States”. The new restrictions are scheduled to come into effect from September 29.

From September 15, Washington will extend its existing 50% tariffs to several additional Canadian products. The expanded list includes steel and aluminium goods, furniture, paper products, mattresses, lamps, motorboats, golf carts and bamboo furniture.

Canadian steel beams and girders, along with aluminium bars, rods, tubes and pipes, will also face the higher tariff rate.

New restrictions widen US-Canada trade dispute

The latest action follows the US decision last month to impose 50% tariffs on nearly $20 billion worth of Canadian imports. The earlier measures affected industries such as wine, furniture, dairy products, cement, clothing, fishing equipment and hockey gear.

However, Washington has removed some products, including cement, road salt and certain hospital paper items, from the tariff list after considering business concerns and supply-chain requirements.

The new import bans will cover products such as beer, wine, cider, whisky, vodka and other spirits. Additional items include molasses, whey products and non-alcoholic beer.

The restrictions have been introduced under Section 338 of the Tariff Act of 1930, which allows the US president to limit imports from countries accused of unfairly restricting American trade.

Canada announces retaliatory measures

Unlike several previous tariff actions against Canada, the latest Section 338 measures will not exclude goods that comply with the US-Mexico-Canada Agreement (USMCA), increasing the potential impact on cross-border supply chains.

Canada has responded by introducing retaliatory tariffs of 15% to 50% on around $20 billion worth of US imports. The measures target American products including steel, furniture, clothing and electronics.

Canadian Prime Minister Mark Carney said reducing the country’s dependence on the US as its largest trading partner “will come at a cost”.

Although officials from both countries remain engaged, formal trade discussions have not resumed after negotiations broke down in late August.