US Bans Some Canadian Dairy Products, Alcohol and Motorcycles as Trade War Escalates

The United States is banning imports of some dairy products and motorcycles from Canada, along with most alcoholic beverages, the White House said Tuesday, as the trade war between the two longtime allies continues to escalate.

The new restrictions will take effect on September 29, shortly after Canada imposed retaliatory tariffs on about $20 billion worth of U.S. imports. Ottawa introduced the measures after trade negotiations with Washington broke down last month and President Donald Trump imposed tariffs on Canadian goods.

Trump has also moved to exclude Canadian products from major, long-term U.S. government contracts. He directed the General Services Administration to declare Canadian products ineligible for those contracts until Canada provides what the administration calls “full and fair reciprocity” for American products.

Canadian Prime Minister Mark Carney said his government’s response is aimed at making Canada more economically independent and accelerating efforts to reduce its vulnerability to U.S. pressure.

“It’s about ensuring that no country can hold us hostage,” Carney said. “And that we can live how we want to live.”

The dispute has severely strained what has historically been one of the world’s closest bilateral relationships. On August 22, the United States imposed 50% tariffs on roughly 5% of Canadian imports, accusing Canada of unfairly treating American dairy, alcohol and auto industries.

Washington and Ottawa have long disagreed over trade issues, particularly Canada’s protected dairy market and subsidies for softwood lumber producers. Despite those disputes, the two countries have remained close economic partners and military allies.

Relations have deteriorated rapidly under Trump. In addition to tariffs, Trump has repeatedly suggested that Canada could become the 51st U.S. state, comments that have provoked strong reactions in Canada.

Carney, who came to power after an unexpected electoral victory last year, campaigned on a promise to stand up to Trump and defend Canada’s economic interests.

Source: The Associated Press (AP)