WASHINGTON, United States — New US import bans targeting Canadian alcohol, dairy products and motorcycles have taken effect, escalating a trade dispute between the two North American neighbours.
The measures, announced by U.S. President Donald Trump earlier this month, came into force on Tuesday, September 29, following Canada’s imposition of retaliatory tariffs on hundreds of US goods.
The US restrictions cover a range of Canadian alcoholic beverages, whey products, molasses, non-alcoholic beer and larger motorcycles and mopeds.
The measures replace existing tariffs on some of the affected products and were imposed after trade negotiations between Washington and Ottawa broke down.
Canadian Alcohol Among Biggest Targets
The latest restrictions affect Canadian liquor exports worth nearly C$1 billion ($710 million), according to the supplied trade data.
Canada relies heavily on the US market for its alcohol exports, with about 93 per cent of Canadian liquor exports in 2025 reportedly destined for the United States.
Industry representatives have warned that the restrictions could have a significant effect on Canadian producers, particularly those heavily dependent on the US market.
Motorcycle exports are expected to face a smaller impact. Canada shipped about 5,000 motorcycles to the US in 2025, worth approximately C$120 million, according to Statistics Canada.
Trump Accuses Canada Of Unfair Trade Practices
Trump announced the import restrictions through a series of proclamations signed on September 8.
The administration said the measures were a response to what it described as Canada’s discriminatory treatment of US commerce, particularly in the dairy, alcohol and motor vehicle sectors.
The latest move follows Canada’s retaliatory tariffs on more than 700 US products. Ottawa has imposed levies ranging from 15 per cent to 50 per cent on various American goods, alongside additional tariffs on some steel and aluminium products.
Several Canadian provinces have also restricted the sale of US alcoholic beverages in response to the trade measures.
No Urgency For New Trade Deal
US Trade Representative Jamieson Greer said last week that the Trump administration was comfortable with the current state of relations with Canada and saw no urgency to reach a new agreement.
Greer said the two countries continued to communicate about potential deals but that Washington was not under pressure to conclude negotiations.
Canadian Prime Minister Mark Carney has described the latest US restrictions as relatively modest compared with other trade measures, while acknowledging that businesses and sectors directly targeted by the bans would be affected.
Economists and business groups have nevertheless warned that the measures could increase uncertainty for companies operating across the US-Canada border.
Trade Dispute Widens
The latest bans are part of a broader series of tariffs and counter-tariffs imposed by the two countries.
The US has imposed 50 per cent tariffs on a range of Canadian goods, including certain dairy, alcohol, steel and aluminium products, while Canadian-built vehicles have also faced additional tariffs.
Canada has responded with tariffs covering hundreds of US products.
The dispute has raised concerns over the future of the two countries’ long-standing trade relationship, with the US remaining Canada’s largest trading partner.
