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A US ban on several Canadian imports, including alcohol, dairy-related products and motorcycles, has taken effect as a trade dispute between the two neighbouring countries continues.
The measure, introduced by the administration of President Donald Trump, follows Canada’s imposition of tariffs on a range of US goods earlier this month after trade negotiations broke down, according to Bloomberg.
Canada is not expected to announce further retaliation. Prime Minister Mark Carney said earlier this month that the impact of the US restrictions on the Canadian economy would be “modest”.
What the US restrictions cover
The ban applies to almost C$1 billion ($710 million; £530 million) worth of Canadian liquor exported to the United States, as well as whey products used in protein powder.
Canadian motorcycle exports to the US will also be affected. Statistics Canada data showed that the country exported about 5,000 motorcycles to the US in 2025, with a total value of approximately C$120 million.
The restrictions were first announced in a series of executive orders signed by Trump on 8 September. The US president said they responded to what he described as Canada’s “continued discrimination” against US dairy, automotive and alcohol products.
Trump told reporters on Monday that Canada had been “treating the United States very unfairly”, adding that it was “one of the worst countries in the entire world”.
Trade talks remain stalled
Trade negotiations between the two countries remain suspended. US Trade Representative Jamieson Greer recently told CNBC that Trump was “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 an interview with the US network last week.
Carney described the latest restrictions as “relatively modest measures” compared with other US trade actions against Canada, while acknowledging that they would hurt directly affected businesses and sectors.
Derek Holt, an economist at Canada’s Scotiabank, wrote in an analysis that the measures were “face-saving by the US administration, not substantive in nature and that’s a positive”.
About 93% of Canada’s liquor exports in 2025 went to the United States. Spirits Canada, which represents Canadian liquor producers, has warned that the consequences for the sector “could be significant”.
Broader tariffs remain in place
Businesses and economists have warned that the restrictions could increase uncertainty around Canada’s trade relationship with its largest trading partner.
The US has also imposed tariffs of 50% on various Canadian goods, including dairy, alcohol, steel and aluminium, and a 25% tariff on cars built in Canada.
Canada has responded with tariffs ranging from 15% to 50% on more than 700 US products, along with a 25% levy on certain steel and aluminium imports. Most Canadian provinces have also halted sales of US liquor.
Trump has made tariffs a central part of his economic policy, arguing that they generate government revenue and encourage consumers to buy goods made in the United States. Economists, however, say the measures have increased prices for everyday goods and disrupted the global economy.
