US Bans Canadian Dairy, Alcohol and Motorcycles, Adds 50% Surcharge on More Goods

Washington moved on Tuesday to bar dairy products, most alcoholic beverages and motorcycles from Canada, the White House said, deepening a trade dispute between the two neighbours. The ban takes effect in three weeks.

The measure followed retaliatory tariffs Canada imposed earlier the same day on $20 billion in US imports. A presidential proclamation also placed a 50% surcharge on a range of Canadian goods, from mattresses to motorboats and golf carts, beginning September 15.

The reciprocal actions extend a pattern of escalation between two long-time allies. Earlier in the standoff, the United States imposed 50% duties on $20 billion of Canadian goods after negotiations broke down, and later moved to raise levies on the auto sector.

Canadian Prime Minister Mark Carney has pledged to reduce his country’s economic reliance on the United States. His government’s retaliatory tariffs target US products in an effort to pressure Washington while it seeks alternative markets.

The dairy, alcohol and motorcycle ban carries direct consequences for Canadian producers and exporters who depend on the US market. The 50% surcharge widens the list of affected categories beyond the outright prohibition, covering consumer and recreational goods.

Canada and the United States remain among each other’s largest trading partners, and successive rounds of tariffs have disrupted supply chains across manufacturing, agriculture and consumer sectors. The auto industry has been among the hardest hit, with duties on vehicles and parts previously raised to 50%.

The ban on Canadian imports is scheduled to begin in three weeks, while the 50% surcharge on the broader list of goods starts September 15.

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