US bans Canadian dairy, alcohol and motorcycles
The White House said the measures would also exclude Canadian goods from major, long-term US government contracts. Donald Trump directed the General Services Administration to classify Canadian products as ineligible until Ottawa allows what he called “full and fair reciprocity” for American goods.
Canada announced its countermeasures earlier on Tuesday. They cover hundreds of US products, including steel, aluminium, cheese, household appliances and farm equipment, with tariff rates ranging from 15% to 50%.
The latest steps followed Washington’s imposition on August 22 of 50% tariffs on about 5% of Canadian imports. The United States accused Canada of treating American dairy, alcohol and automotive industries unfairly.
Mark Carney, Canada’s prime minister, defended the retaliation and said the government’s wider approach was focused on economic independence. “It’s about ensuring that no country can hold us hostage,” he said. “And that we can live how we want to live.”
More than 70% of Canadian exports currently go to the United States. Carney said exports to other markets were expected to double over the next decade and described the earlier trading relationship as convenient but overly dependent on one partner. He said the government would use the disruption to support domestic investment and diversify international trade.
Carney also said negotiations had failed because Washington sought concessions affecting cultural protections and industries including automotive manufacturing, steel and forestry. A Canadian official said Ottawa was examining closer structural links with the European Union, while Carney is due to speak to the European Parliament next week.
Wendy Cutler, a former US trade official, said Carney’s domestic approval rating was above 70% and that neither government wanted to look too willing to negotiate. The dispute has altered relations between the two neighbouring countries, and neither capital has indicated that it is ready to withdraw its measures.
