Trump hits Canada with import bans, 50% tariffs
US President Trump has announced new import bans and 50% tariffs on some Canadian goods as tensions between the two countries intensify. This comes a day after Ottawa's retaliatory tariffs on US products took effect
Canadian dairy products, motorcycles and alcoholic beverages face import bans in the United States, while other goods from across the border will be hit with 50% tariffs, the White House said Tuesday, as President Donald Trump escalates a trade war with Ottawa.
The import ban is scheduled to take effect on 29 September.
Trump also ordered a 50% tariff on additional Canadian goods, including mattresses, motorboats and golf carts, starting 15 September.
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The latest moves came after Canada imposed retaliatory tariffs of up to 50% on about $20 billion (€17.2 billion) of US goods on Monday, following Washington's decision last month to levy 50% tariffs on selected Canadian imports.
Why is Trump imposing an import ban?
The White House said the alcohol ban was partly in response to provincial boycotts of US alcohol. Canadian provinces have removed many US wines and spirits from store shelves amid a widespread boycott of American goods, a move Trump called "discriminatory."
"President Trump is doing this to make sure, again, that we keep a level playing field, deter retaliation, and of course protect American production," a senior administration official, speaking on condition of anonymity, told reporters on a call.
Trump also directed the US General Services Administration to exclude Canadian products from its long-term government procurement contracts unless Ottawa restores what he called "full and fair reciprocity" for American farmers and companies.
On Monday, Trump threatened to block Canadian aircraft maker Bombardier from selling planes in the US unless it manufactures them in the United States.
What did Canadian Prime Minister Carney say?
Nearly 68% of Canadian exports headed to the US this year, with about 80% of those shipments entering duty-free under the United States-Mexico-Canada Agreement (USMCA) exemptions, data showed.
However, the latest escalation also cast a shadow on the future of the three-nation trade pact.
Canadian Prime Minister Mark Carney said his country would accelerate efforts to reduce its dependence on the US.
"It's about ensuring that no country can hold us hostage. And that we can live how we want to live," Carney said on Tuesday.
Aside from tariffs, Canadians were also irked by Trump's repeated reference to their country as the 51st US state and an order renaming Lake Ontario to Lake America.
Trump pushes Canada towards EU
Trump wielding tariffs as a tool to force smaller partners to agree to lower tariffs in return for market access, investment pledges or alignment with US policy has other governments watching to see how Canada's standing up to Trump plays out.
Recent developments have pushed Ottawa to explore a deeper relationship with the European Union.
Next week, Carney is due in Strasbourg, France, and scheduled to address the European Parliament.
