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The United States has brought into effect an import ban on products from Canada. According to a decision published by the White House, the restrictions cover Canadian alcoholic beverages, molasses, motorcycles, whey and whey derivatives.
Operative Information Center-OMM reports that foreign media outlets provided the information.
According to an analysis by Derek Holt, head of economics at Scotiabank Capital Markets, the impact of the ban on these sectors will be limited because Canada exports only small amounts of dairy products and motorcycles to the United States.
Alcoholic beverages, however, account for a larger share than the other categories, with exports to the United States worth $1.2 billion last year. Holt said he believed the US administration’s measures were driven more by considerations of influence and leverage than by technical issues.
Some cheese products have not been banned outright but have been added to a list of goods subject to a 50% customs tariff. Paper, aluminum, timber, furniture and lighting products have also been included on the list.
International trade lawyer Barry Appleton said the strategy was intended to test Canada’s position after a prolonged period of tensions. A senior US administration official said the restrictions were also intended as a warning to other countries planning to retaliate against the administration’s tariff policy.
US President Donald Trump told reporters in the Oval Office that a trade agreement with Canada was still possible. He said Canada would come to negotiations seeking the removal of customs tariffs and that a fair agreement would be reached.
US Trade Representative Jamieson Greer said Washington was not rushing into negotiations on a new agreement and was satisfied with the current situation. Canada-US Trade Minister Dominic LeBlanc said his country was ready for an agreement but was not expecting a call.
The trade dispute between the two countries has continued since Donald Trump took office as US president. The failure of negotiations on a new agreement at the last minute in August further strained relations.
After no agreement was reached, the United States imposed a 50% customs tariff in August on approximately $28 billion worth of Canadian goods. Canada responded with retaliatory tariffs at the same rate.
These measures were added to existing US tariffs on Canadian steel, aluminum, automobiles and timber products.
The latest restrictions form part of a broader cycle of tariff measures and countermeasures between the two North American trading partners, whose economies remain closely integrated through cross-border supply chains and the United States-Mexico-Canada Agreement.
