US measures banning imports of certain products from Canada are now in effect. The list includes alcoholic beverages, dairy products and motorcycles, as the trade dispute between the two neighboring countries continues.
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The Trump administration’s latest decision follows tariffs Canada imposed on a range of US goods earlier this month after trade negotiations broke down.
Prime Minister Mark Carney has said the economic damage from the import restrictions is likely to be “modest”. Canada is therefore not expected to take further retaliatory measures.
Negotiations between the two countries have not resumed. US Trade Representative Jamieson Greer told CNBC that President Donald Trump is “satisfied” with the current state of relations with Canada.
“They call us from time to time, and we have good conversations about possible deals. But we’re in no rush,” Greer said.
The restrictions announced on Tuesday affect Canadian alcoholic beverages worth nearly 1 billion Canadian dollars, or 710 million dollars, exported to the US. The ban also covers whey products used to make protein powders.
The measures will also apply to motorcycles. However, according to Statistics Canada, the country exported only about 5,000 motorcycles to the US in 2025, worth approximately 120 million Canadian dollars, so the effect on this sector is expected to be small.
Trump announced the bans on September 8 through a series of executive orders. He presented them as a response to what he called Canada’s “continued discrimination” against American dairy products, automobiles and alcohol.
The US president accused Canada of “treating the United States very unfairly” and said: “They have been one of the worst countries in the entire world.”
Carney has previously described the restrictions as “relatively modest measures” compared with other trade actions the US has taken against Canada. He acknowledged, however, that the businesses and sectors directly targeted will suffer harm.
In an analysis, Derek Holt, an economist at Canadian bank Scotiabank, wrote that “these actions are about saving face for the US administration, are not substantial in nature, and that is positive”.
The consequences for alcohol producers could be significant: in 2025, about 93% of Canadian alcoholic beverage exports went to the US. Spirits Canada, an organization representing the industry, has warned that the impact “could be significant”.
Economists and companies have raised concerns that the bans will add to uncertainty about the future of trade with the US, Canada’s largest trading partner.
In addition to the latest bans, the US has imposed 50% tariffs on a range of Canadian goods, including dairy products, alcohol, steel and aluminum, as well as 25% tariffs on vehicles made in Canada.
Canada has responded with retaliatory tariffs ranging from 15% to 50% on more than 700 US products, as well as a 25% tax on certain steel and aluminum products. Most Canadian provinces have also banned the sale of alcoholic beverages from the US.
