WASHINGTON (AP) — U.S.-Canada relations, already tense, are likely to deteriorate further after the United States went ahead early Tuesday with a decision to ban nearly $1 billion worth of Canadian imports, including alcoholic beverages, dairy products and motorcycles.
The ban amounts to barely a ripple in $880 billion worth of annual two-way trade between the two northern neighbors. But it marks another ratcheting up of President Donald Trump’s second-term trade war with America’s longtime ally and trading partner.
The import ban “certainly won’t do anything to help the trade tensions between the United States and Canada,” said trade attorney Patrick Childress, a partner at Holland & Knight and a former U.S. trade official.
The latest sparring began over the summer when Trump reached back to a Great Depression law to impose 50% tariffs on about $20 billion worth of Canadian imports, charging that Canada discriminates against U.S. dairy, auto and alcoholic beverage producers. Canada promptly counterpunched with tariffs of 15%, 25% or 50%, matching U.S. imports dollar for dollar.
To punish Canada for retaliating against his tariffs, Trump decided to ban a list of Canadian products, effective 12:01 a.m. Eastern time Tuesday.
Jacob Jensen, director of trade policy at the center-right American Action Forum think tank, calculates that the ban would cover $967 million worth of Canadian imports, based on 2025 numbers. Of that, 87% would be alcoholic beverages that the U.S. targeted because of some Canadian provinces responding to Trump’s provocations by banning U.S. booze from store shelves.
Also banned are some dairy products — including the milk byproduct whey. The two countries have long clashed over Canada’s attempts to protect its dairy industry from foreign competition by imposing hefty tariffs once dairy imports have exceeded a quota.
Canadian Prime Minister Mark Carney came to power last year on a promise to stand up to Trump. In addition to retaliating against Trump tariffs — China is the only other country to do so, with very different results — Carney has sought to reduce Canada’s reliance on the United States, which last year accounted for more than 70% of Canadian exports.
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