Newsletters
A U.S. ban on nearly $1 billion worth of Canadian imports took effect Tuesday, covering products including alcoholic beverages, dairy goods and motor vehicles as trade tensions between the two longtime partners deepen.
The restrictions entered into force at 12:01 a.m. Eastern time under an executive order signed by U.S. President Donald Trump.
The banned products include beer, sparkling wine, brandy, sake and other liquors, as well as whey protein and high-powered motorcycles.
U.S. Trade Representative Jamieson Greer said the measures were a direct response to what Washington described as Canada's discriminatory treatment of key U.S. exports.
Canada has announced retaliatory tariffs of 15%, 25% or 50% on selected U.S. products. The measures, covering about $20 billion in U.S. exports, took effect Sept. 8.
The U.S. had previously announced a 50% tariff in July on certain Canadian goods, accusing Ottawa of discriminatory practices against American products. Those tariffs took effect Aug. 22.
Talks aimed at resolving the dispute broke down in August after several days of negotiations in Washington.
Trump announced the latest import restrictions in September and has accused Canada of treating the U.S. unfairly.
"The problem is that they've treated the United States very unfairly," Trump told reporters at the White House on Monday.
The nearly $1 billion covered by the ban is limited compared with annual bilateral trade of about $880 billion between the two countries.
Canada, however, remains heavily dependent on the U.S. market. Nearly 60% of its imports come from the United States, while about 70% of its exports go to the U.S.
Canada's government has announced a $5.4 billion aid package to support businesses and workers affected by the trade dispute.
Spirits Canada warned that the impact on the country's alcohol industry could be "significant," noting that about half of Canadian spirits production is tied to U.S. demand.
"This leaves Canadian producers with limited ability to replace lost U.S. demand in the near term," the association said.
Set as preferred source
Set as preferred source
1 min read
1 min read
