US ban on $1B of Canadian imports takes effect
11:53, 29/09/2026, Tuesday
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File photoWashington's ban on roughly $1 billion worth of Canadian goods, including alcohol, dairy and motor vehicles, came into force Tuesday. Ottawa has retaliated with fresh tariffs on selected US products, deepening a trade dispute between the two long-standing allies and trading partners.
A US ban on about $1 billion worth of imports from Canada took effect Tuesday, covering items such as alcoholic beverages, dairy products and motor vehicles, after President Donald Trump signed an executive order barring their sale in the United States. While the restriction is unlikely to deliver a major economic blow given the roughly $880 billion in annual bilateral trade between the two countries, it marks a new chapter in the widening trade row with Canada, a longtime US ally and trading partner.
Washington cites discriminatory treatment
US Trade Representative Jamieson Greer said in a statement that the measures were a direct response to what he described as Canada's discriminatory treatment of critical American exports. The banned list covers select alcoholic beverages, dairy products and motor vehicles, targeting sectors that carry political and economic weight on both sides of the border.
Tit-for-tat tariffs escalate
The dispute has escalated in stages this year. In July, the US administration announced it would impose a 50% tariff on certain Canadian goods, accusing Ottawa of discriminatory practices against American products, with those duties taking effect on Aug. 22. Canada responded by announcing tariffs of 15%, 25% or 50% on some US products, which entered into force on Sept. 8. The exchange has raised concerns about the stability of one of the world's largest trading relationships and the potential spillover for global supply chains.