Canada–U.S. trade dispute escalates as Washington announces new import bans

WASHINGTON – The trade dispute between Canada and the United States has escalated significantly, with Washington announcing new restrictions on Canadian imports only hours after Ottawa’s latest round of retaliatory tariffs took effect.

Beginning September 8, Canada imposed tariffs of 15, 25 and 50 percent on C$27.6 billion worth of U.S. goods, matching tariffs previously imposed by the United States on Canadian products. Ottawa’s measures target a range of sectors, including steel and aluminum, dairy products, appliances, agricultural equipment, pulp and paper, plastics and electronics.

The Trump administration responded by announcing that the United States will prohibit imports of a broad range of Canadian alcoholic beverages, motorcycles and certain dairy products beginning September 29. Washington also added several Canadian products, including some cheeses, paper, aluminum, wood, furniture and lighting products, to lists facing additional tariffs.

President Donald Trump has separately directed the U.S. General Services Administration to begin removing Canadian-origin products from federal government purchasing schedules, accusing Canada of failing to provide American companies with reciprocal access to government procurement markets.

Prime Minister Mark Carney has defended Ottawa’s response, while warning that Canada’s effort to reduce its economic dependence on the United States will carry costs. Canadian Trade Minister Dominic LeBlanc said Ottawa remains in contact with U.S. Trade Representative Jamieson Greer in an effort to find a way forward.

The widening dispute comes amid growing uncertainty over the future of the Canada–U.S. economic relationship and the stability of the Canada–United States–Mexico Agreement, which continues to shield much bilateral trade from tariffs.