Canadian alcohol faces Trump ban and new tariffs

US President Donald Trump issued executive orders late Tuesday, September 8, banning imports of some Canadian alcoholic beverages and dairy products and imposing new 50% tariffs on other Canadian goods as the trade dispute with Canada widened.

The 50% surcharge is due to apply from September 15 to products including mattresses, motorboats and golf carts. Separate orders say import bans targeting various alcoholic beverages and some dairy products, including whey, will take effect on September 29.

Canada's retaliatory tariffs took effect earlier Tuesday, applying to $27.6 billion, or US$20 billion, in US imports including steel and aluminum products and dairy goods such as cheese. Ottawa imposed them in response to duties Washington announced on August 22.

Canadian Prime Minister Mark Carney said Canada had “everything we need to pivot and prosper” and said reducing economic reliance on the United States would come at a cost, but less than “standing still.” He said he did not believe in escalating the dispute, but that Canada's tariffs were needed to protect workers, companies and communities.

Dominic LeBlanc, Canada's minister in charge of trade with the United States, said Ottawa was assessing the latest US tariff measures.

Trump also said he was directing officials to remove Canadian-origin products from the General Services Administration's Multiple Award Schedules, a US government contracting program. He said contracts through the schedules account for more than $50 billion a year.

On Monday, Trump threatened to try to block sales by Canada's Bombardier Aviation unless the Quebec-based plane maker moves manufacturing to the United States. Bombardier pointed to its US employment, including direct jobs in more than 20 states. Kansas Republican senators Roger Marshall and Jerry Moran said they had raised concerns with the White House about Bombardier jobs in their state.

Trade talks between Ottawa and Washington broke down on August 21 after meetings in Washington. Carney said at the time that US negotiators had introduced late restrictions on Canadian trade deals with other countries and made unacceptable threats to the French language and Quebec culture. The two countries have not resumed talks since.

Canada remains closely tied to the US economy. Nearly 60% of Canada's imports come from the United States, and about 70% of its exports go to the US market. The Canadian government has announced a $7.5 billion, or US$5.4 billion, aid package to help businesses and workers.