US ban on Canadian alcohol and dairy takes effect as trade war continues

A US ban on a range of Canadian imports — including alcohol, dairy products and motorcycles — came into force on Tuesday as the trade dispute between the two neighbouring countries continues. The move by the Trump administration responds to tariffs Canada placed on various US goods earlier this month, following the collapse of trade negotiations.

The ban covers nearly C$1 billion (about $710 million) worth of Canadian liquor exports to the US, along with whey products used in protein powder. Motorcycle exports will also be affected, though Canadian government data shows the country shipped only around 5,000 motorcycles to the US in 2025, worth roughly C$120 million, meaning the practical impact should be limited.

Trump first announced the import bans through executive orders signed on 8 September, describing them as a response to what he called Canada's "continued discrimination" against US dairy, automotive and alcohol industries. Speaking to reporters on Monday, he accused Canada of treating the United States "very unfairly," calling it one of the worst countries in the world in this regard.

Canadian Prime Minister Mark Carney said earlier this month the bans amount to "relatively modest measures" compared with other US trade actions against Canada, though he acknowledged they would hurt businesses and sectors directly targeted. He indicated Canada does not plan further retaliation for now.

Scotiabank economist Derek Holt wrote in an analysis that the measures are largely a face-saving move by the US administration rather than substantively significant. Still, Spirits Canada, which represents Canadian liquor producers, warned the consequences for the industry could be significant, noting that about 93% of all Canadian liquor exports in 2025 went to the US market.

Beyond the new import bans, the US already imposes 50% tariffs on various Canadian goods including dairy, alcohol, steel and aluminium, plus 25% tariffs on Canadian-built vehicles. Canada has responded with retaliatory tariffs ranging from 15% to 50% on more than 700 US products, and most Canadian provinces have stopped selling US liquor altogether.