A US ban on several Canadian imports, including alcohol, dairy products and motorcycles, has taken effect as the trade dispute between the United States and Canada continues.
The latest measures introduced by the Trump administration come in response to Canada’s implementation of tariffs on a range of US goods earlier this month after trade talks between the two countries broke down.
Canada is not expected to introduce further retaliatory measures. Prime Minister Mark Carney said earlier this month that the economic impact of the latest US import bans would be “modest”.
Trade negotiations remain stalled, with US Trade Representative Jamieson Greer telling CNBC that President Donald Trump is “comfortable” with his current relationship with Canada.
“They call us now and then and we have good conversations about potential deals. But there’s no urgency on our side,” Greer said in the interview.
The latest US trade ban affects nearly C$1bn ($710m; £530m) worth of Canadian liquor exports to the US, along with whey products used in protein powder.
Motorcycle exports will also be affected, although Canada exported only about 5,000 motorcycles to the US in 2025, worth around C$120m, according to Statistics Canada.
The import restrictions were first announced by Trump in a series of executive orders signed on 8 September. Trump said the measures were in response to “continued discrimination” by Canada against US dairy, automotive and alcohol products.
Speaking to reporters on Monday, Trump accused Canada of “treating the United States very unfairly”.
“They have been one of the worst countries in the entire world,” Trump said.
Carney said the latest bans “are relatively modest measures” compared with other trade actions imposed by the US on Canada. He acknowledged, however, that the measures would affect businesses and sectors directly targeted by the restrictions.
Derek Holt, an economist with Canadian bank Scotiabank, described the actions as “face-saving by the US administration, not substantive in nature and that’s a positive”.
About 93% of Canadian liquor exports in 2025 were sold to the US. Spirits Canada, which represents Canadian liquor producers, has warned that the consequences for the industry “could be significant”.
US liquor producers have also raised concerns, with the Distilled Spirits Council warning that the import ban “will ripple throughout the US hospitality sector” as businesses prepare for the holiday season.
Last week, dozens of American liquor producers signed an open letter urging Trump to resolve the trade dispute with Canada over alcohol imports.
Canadian economists and businesses have also warned that the latest measures could increase uncertainty around the future of the country’s trade relationship with the US, its largest trading partner.
The US has also imposed 50% tariffs on several Canadian goods, including dairy, alcohol, steel and aluminium products, alongside 25% tariffs on Canadian-built cars.
Canada has responded with tariffs ranging from 15% to 50% on more than 700 US products, as well as a 25% levy on certain steel and aluminium products. Most Canadian provinces have also stopped selling US liquor.
Tariffs, which are taxes paid on imported goods, are central to Trump’s economic agenda. He argues that they increase government revenue and encourage consumers to buy American-made products.
Economists, however, have argued that tariffs have increased the prices of everyday goods for consumers and disrupted the global economy.
