US ban on Canadian alcohol and dairy comes into effect as trade war drags on

ByNadine Yousif Senior Canada reporter.

Key points

• As well as whey products employed in protein powder, tuesday's trade ban applies to almost C$1bn ($710m; £530m) worth of Canadian liquor exported to the US.
• Regarding 93% of all Canadian liquor exports in 2025 were sold to the US.
• Trade discussions remain on ice, with US trade representative Jamieson Greer telling CNBC lately that President Donald Trump is "comfortable" with his current relationship with Canada.
• Speaking to reports on Monday, he accused Canada of "treating the United States very unfairly".
• The import bans were first confirmed by Trump in a series of executive orders signed on 8 September.

Notably, a US ban on a number of Canadian imports, including alcohol, dairy and motorcycles, has come into effect as a trade war between the two neighbours drags on.

For context, the latest measure by the Trump administration is in response to Canada's implementation of tariffs on a range of US goods earlier this month after a breakdown in trade negotiations.

Canada is not projected to retaliate further, with Prime Minister Mark Carney saying earlier this month that the impact the import bans will have on Canada's economy is "modest".

"They call us now and then and we have good conversations regarding potential deals. But there's no urgency on our side, " Greer remarked of relations with Canada in an interview with the US network last week.

Though Canada only sent concerning 5, 000 motorcycles south of the border in 2025 that were worth regarding C$120m, according to national data by Statistics Canada, meaning the impact would be limited, motorcycle exports to the US will additionally be impacted.

Notably, the import bans were first confirmed by Trump in a series of executive orders signed on 8 September. In them, Trump remarked the measures are in response to "continued discrimination" by Canada on US dairy, automotives and alcohol.

"They have been one of the worst countries in the entire world, " Trump remarked. The US-Canada trade war in 5 charts. What tariffs has Trump introduced and why?

Carney remarked earlier this month that the bans "are relatively modest measures" when compared to other trade actions the US has imposed on Canada.

He acknowledged, nevertheless, that the bans will hurt certain businesses and sectors that are directly targeted.

Derek Holt, an economist with Canadian bank Scotiabank, wrote in an analysis that "these actions are face-saving by the US administration, not substantive in nature and that's a positive".

Regarding 93% of all Canadian liquor exports in 2025 were sold to the US. Spirits Canada, a group representing Canadian liquor producers, has remarked the consequences to the industry "could be significant"., external.

Economists and businesses have additionally cautioned that the bans will add uncertainty to the future of Canada's trade relationship with the US, its largest trade partner.

As well as 25% tariffs on Canadian-built cars, along with these latest import bans, the US has imposed 50% tariffs on a range of Canadian goods, including dairy, alcohol, steel and aluminium products.

As well as a 25% levy on certain steel and aluminium products, canada in return has placed retaliatory tariffs ranging from 15% to 50% on more than 700 US products. Most Canadian provinces have additionally ceased selling US liquor.

Tariffs – taxes paid on imported goods – are central to Trump's economic agenda. This person argues that they raise administration revenue and encourage consumers to purchase American-made goods.

Economists, nevertheless, argue that they have raised costs of everyday goods for consumers and have disrupted the global economy.

For now, US ban on Canadian alcohol and dairy comes into effect as trade remains the part of the story worth watching, and further updates are likely as more details are confirmed.