The United States has announced new restrictions on a range of Canadian imports, including alcoholic spirits, selected dairy products and motorbikes, escalating a months-long trade dispute between the two neighbouring countries.
The measures, announced through a series of executive orders by US President Donald Trump on Tuesday, will take effect on September 29.
The White House accused Canada of discriminating against American businesses and said the restrictions were necessary in response to Ottawa’s retaliatory tariffs on US goods.
The latest move comes after Canada introduced counter-tariffs on American products following Washington’s decision last month to impose 50 per cent tariffs on about $20 billion worth of Canadian goods.
Canada’s Trade Minister Dominic LeBlanc described the new US measures as “unjustified”, saying the government would continue working to protect Canadian workers, families and businesses.
“Our core focus is on what we can control: building strength at home, diversifying our partnerships abroad, and building Canada strong for all Canadians,” LeBlanc said.
He added that he had contacted his US counterpart and remained committed to resolving the dispute through dialogue.
Canadian Prime Minister Mark Carney also acknowledged the economic consequences of reducing reliance on the United States, saying his country’s effort to diversify trade partnerships “will come at a cost”.
The United States and Canada have historically maintained one of the world’s closest economic relationships, with both countries serving as major trading partners.
More than two-thirds of Canada’s exports are normally sent to the US market. According to United Nations trade data compiled by Trading Economics, Canadian exports of alcoholic spirits to the US were valued at about $687 million in 2025, while dairy exports reached $269 million and motorbike exports stood at $90 million.
However, analysts said the newly restricted products represent only a small portion of Canada’s overall exports to the US.
Stephen Brown, chief North America economist at Capital Economics, estimated that the affected imports account for roughly 0.25 per cent of Canada’s exports to the United States.
He said the move appeared designed primarily to increase economic pressure rather than generate government revenue.
“Trump’s willingness to impose an import ban is further evidence that these latest measures are about inflicting economic pain rather than raising revenue,” Brown said.
The products affected by the new US restrictions include selected dairy goods such as whey, cane molasses, non-alcoholic beer, several categories of wine, rum and vodka, malt beer, and motorcycles including mopeds.
Other Canadian goods will face increased import taxes, including certain cheeses, raw hides and skins, paper products, furniture, mattresses, aluminium and iron products, motorboats, golf carts, fishing equipment components and electrical switchboards.
Washington has repeatedly criticised Canada’s dairy protection system, which uses production quotas, controlled pricing and import restrictions for dairy, eggs and poultry.
US officials argue that the system disadvantages American farmers, while Canadian authorities maintain that the measures protect domestic producers and rural communities.
Although officials from both countries have expressed interest in reaching a new trade agreement, formal negotiations have not resumed since talks collapsed in late August.
Business groups on both sides of the border have warned that prolonged trade tensions could increase costs for consumers, disrupt supply chains and affect companies dependent on cross-border commerce.
