The trade dispute between the United States and Canada intensified Tuesday as the Trump administration introduced a new round of tariffs and import restrictions targeting a broad range of Canadian products.
The latest measures include bans on selected alcohol, dairy-related and motor-vehicle imports, while expanding a 50% retaliatory tariff to additional products such as specialty cheeses, recreational boats and furniture.
U.S. President Donald Trump enacted the measures through five proclamations on the same day Canada began imposing tariffs of up to 50% on a range of U.S. goods, matching rates previously introduced by the Trump administration.
The new U.S. import bans are scheduled to take effect Sept. 29. They cover motorcycles, mopeds and cycles equipped with internal-combustion piston engines with cylinder capacities above 800 cubic centimeters.
The restrictions also cover beer, wine, cider and other fermented beverages, high-proof beverage alcohol and numerous major spirits categories. Dairy-related products including whey products, as well as molasses and non-alcoholic beer, are also included.
Until the import bans come into force, the affected products will continue to be subject to a 50% Section 338 tariff.
According to Deborah Elms, a trade and economic policy expert at the Hinrich Foundation, the products targeted by the upcoming import bans represent less than $1 billion in trade value.
Elms described the overall tariff changes as “basically a wash,” noting that the administration simultaneously removed several products from the Section 338 tariff list.
Among the products removed from the levies are toilet paper, salt, cement, as well as whiskies, liqueurs and cordials shipped in containers larger than 4 liters.
“Of course, if your firm produces the goods now added to any list, it’s impactful,” Elms said. “But given that [Canada] is the largest trading partner for the US, even big scary numbers of tariff damage are actually very modest.”
More products added to the 50% tariff list
The administration is also expanding the range of products subject to 50% Section 338 tariffs beginning Sept. 15.
The expanded list includes specialty cheeses, modified fats and oils, bovine hides and upholstery leather, certain raw and dressed furskins, and recreational motorboats.
Other products now facing the 50% tariff include specialty paper, selected steel and aluminum products, metal fittings and welding inputs, golf carts, furniture and lamps.
The tariffs apply regardless of whether the goods qualify for preferential treatment under the United States-Mexico-Canada Agreement. They also stack on top of existing Section 232 tariffs, according to a White House fact sheet.
Trump targets Canada’s access to federal procurement
The administration’s response goes beyond tariffs and import bans.
Trump has directed the U.S. Trade Representative and the administrator of the General Services Administration to remove $50 billion worth of Canadian products from the GSA’s Multiple Award Schedules.
The decision was detailed in the White House fact sheet, which links to a post from Trump on Truth Social.
The Multiple Award Schedules give federal, state, local and tribal governments access to commercial products and services.
Dispute centers on three sectors
The latest escalation follows what Trump characterized as discriminatory Canadian policies affecting U.S. commerce in three sectors: alcoholic beverages, dairy products and motor vehicles.
The president argues that federal and provincial policies in Canada unfairly disadvantage U.S. products compared with goods originating from other countries, according to the proclamations.
The broader trade dispute intensified after negotiations failed last month over the 50% tariffs Trump announced in July, with both countries blaming the other for the breakdown in talks.
After Canadian Prime Minister Mark Carney recalled negotiators, Trump proceeded with 50% tariffs covering approximately $20 billion worth of Canadian imports.
The affected U.S. tariff categories include raw agricultural and natural materials, chemicals, textiles, consumer goods, wood products, paper, machinery and tools.
Canada has now responded with duties on approximately the same value of U.S. goods, matching the rates imposed by Washington.
Those Canadian tariffs took effect Tuesday and target U.S. steel, dairy products, appliances, agricultural equipment, electronics, and pulp and paper products.
The latest measures mark another significant step in the rapidly escalating trade confrontation between the two North American economies, with companies on both sides now facing a wider range of tariffs and, in some cases, outright restrictions on cross-border trade.
