US bans Canadian dairy, alcohol and motorcycles in escalating trade war

The White House announced on Tuesday that the United States will ban Canadian dairy products, most alcoholic beverages and motorcycles, with the prohibition taking effect in three weeks.

The move represents a sharp escalation in the trade conflict between Washington and Ottawa, coming hours after Canada imposed retaliatory tariffs on US$20 billion worth of American imports earlier the same day.

50% surcharge on broader product range

A presidential executive order also introduced a 50 per cent tariff on a wider array of Canadian goods, including mattresses, motorboats and golf carts, starting September 15.

President Donald Trump simultaneously directed the US General Services Administration to exclude Canadian products from large, long-term government contracts until Canada permits "full and fair reciprocity" for American goods.

Carney vows greater independence

Canadian Prime Minister Mark Carney responded by pledging to accelerate efforts to reduce his country's reliance on the United States. "It's about ensuring that no country can hold us hostage. And that we can live how we want to live," Carney said.

He described Canada's strategy as focused on building greater independence in the face of American trade measures.

The bans and tariffs mark one of the most serious trade disputes between the two North American neighbours, who have historically maintained close economic and security ties.

Source: South China Morning Post