From alcoholic beverages to motorcycles, Trump’s order blocking Canadian imports takes effect, affecting the neighbor’s economy

The US administration has implemented a ban on certain imports from Canada, including alcoholic beverages, dairy products and motorcycles, further escalating the trade war between the two neighboring countries.

The latest decision by the Trump administration came after Canada imposed tariffs on a range of US goods at the beginning of this month, following the suspension of trade negotiations.

Canadian Prime Minister Mark Carney said Ottawa is not expected to take further retaliatory measures. According to him, the impact of the US bans on the Canadian economy will be “modest.”

Meanwhile, negotiations between the two countries remain suspended. US Trade Representative Jamieson Greer told CNBC that President Donald Trump is “pleased” with the current relationship with Canada.

“They call us from time to time and we have good conversations about possible deals. But there is no urgency on our part,” Greer said.

The measure announced on Tuesday affects approximately 1 billion Canadian dollars, or 710 million US dollars, in alcoholic beverage exports to the United States. The list of banned products also includes whey products used to produce protein powder.

Motorcycle exports will also be affected by the ban. However, according to national data from Statistics Canada, Canada sent only around 5,000 motorcycles to the United States in 2025, worth approximately 120 million Canadian dollars, so the consequences for this sector are expected to be minimal.

Trump first made the bans public through a series of executive orders signed on September 8. In these documents, the US president said the measures were in response to Canada’s “continued discrimination” against American dairy, automobile and alcohol products.

Trump also accused Canada of “treating the United States very unfairly.”

“They have been one of the worst countries in the entire world,” he said.

Carney had previously emphasized that the bans were “relatively modest measures” compared with other trade actions taken by the United States against Canada.

However, the Canadian prime minister acknowledged that businesses and sectors directly affected would face consequences.

Derek Holt, an economist at Canadian bank Scotiabank, wrote in an analysis that “these actions are about saving face for the US administration, not substantial in nature, and that is positive.”

The Canadian alcoholic beverage sector’s dependence on the US market is high. Around 93% of Canada’s exports of these products in 2025 were sold in the United States. Spirits Canada, an organization representing Canadian alcoholic beverage producers, warned that the consequences for the industry “could be significant.”

Economists and companies have also raised concerns about the uncertainty these decisions could create regarding the future of Canada’s trade relationship with the United States, its largest economic partner.

In addition to the new bans, the United States has imposed tariffs of 50% on a range of Canadian products, including dairy goods, alcoholic beverages, steel and aluminum. Meanwhile, a 25% tariff applies to vehicles produced in Canada.

In response, Canada has imposed tariffs ranging from 15% to 50% on more than 700 American products, as well as a 25% tax on certain steel and aluminum products. Most Canadian provinces have also banned the sale of American alcoholic beverages.