US bans Canadian dairy, alcohol and motorcycles as trade war with longtime ally escalates
The White House announced a ban on Canadian dairy products, most alcoholic beverages and motorcycles, escalating the trade war between the United States and Canada. The move came after Canada imposed retaliatory tariffs worth $20bn on US imports, and Donald Trump also barred Canadian products from large, long-term US government contracts until Canada offers "full and fair reciprocity" to American goods. The dispute has badly damaged what was once one of the world's closest bilateral relationships, with Canadian prime minister Mark Carney vowing to reduce his country's economic dependence on the US.
The US ban takes effect in three weeks and follows some Canadian provinces banning the sale of US alcoholic products. It builds on 50% tariffs the US imposed on about 5% of Canadian imports on 22 August, after accusing Canada of unfair treatment of American dairy, alcohol and auto industries. Canada's retaliatory tariffs, covering roughly $20bn of goods including steel, aluminium, cheese and appliances, apply at rates of 15%, 25% or 50% and affect about 6% of the $333.6bn in goods the US exported to Canada last year. Trump has repeatedly suggested making Canada the 51st US state, fuelling Canadian anger, cuts to travel to the US and boycotts of American goods, even as officials from both sides say informal contact continues despite the collapse of formal talks on 21 August.
- US bans Canadian dairy, alcohol and motorcycles amid trade war
- Move follows Canada's $20bn retaliatory tariffs on US goods
- Carney vows to reduce Canada's economic reliance on the US