U.S. Widens Trade War With New Bans on Canadian Goods

The United States has widened its trade dispute with Canada by moving beyond tariffs and targeting Canadian products with import bans and government-procurement restrictions. President Donald Trump signed five executive orders Tuesday that will prohibit imports of most Canadian alcoholic beverages, certain dairy products and motorcycles beginning Sept. 29. Trump also directed the U.S. General Services Administration to begin removing Canadian-made products from purchasing schedules used by federal agencies and some state and local governments.

The measures were announced hours after Canadian counter-tariffs took effect on $27.6 billion worth of American goods, with rates of 15, 25 or 50 per cent applied to products including steel, agricultural equipment, appliances and electronics. Washington says its response is intended to counter Canadian restrictions affecting American alcohol, vehicles and dairy products, as well as alleged barriers facing U.S. suppliers in Canadian government procurement. The latest orders follow Trump’s threat to block Bombardier aircraft from the American market unless the company moves production to the United States.

Prime Minister Mark Carney has acknowledged that reducing Canada’s reliance on the American market will carry economic costs but argues that accepting an unfavourable agreement would be more damaging. Canada–U.S. Trade Minister Dominic LeBlanc said Ottawa is assessing the new measures and remains willing to negotiate a mutually beneficial arrangement that respects Canadian sovereignty. Alberta Premier Danielle Smith has cautioned against further escalation as businesses in Alberta and British Columbia face growing uncertainty over export access, purchasing costs and cross-border supply chains.