US-Canada trade war deepens as Washington adds new import bans

WASHINGTON (MNTV) — The trade conflict between the United States and Canada has entered a sharper phase, with Washington imposing new import bans on a range of Canadian goods as relations between the two allies deteriorate.

President Donald Trump signed orders banning imports of Canadian whey, molasses, non-alcoholic beer, and a wide range of alcoholic drinks — beer, wine, cider, whisky, vodka, and other spirits — along with larger motorcycles, effective Sept. 29; the bans largely replace existing 50 percent tariffs.

Separate tariff changes taking effect Sept. 15 add all-terrain vehicles and animal hides while dropping rock salt and cement. 

The measures landed the same day Canadian tariffs on about $20 billion of U.S. imports took effect, targeting more than 700 products including steel, dairy, and agricultural equipment — Ottawa’s retaliation for the 50 percent US duties imposed after talks collapsed.

U.S. Trade Representative Jamieson Greer called the bans a “natural consequence” of what Washington deems Canada’s discriminatory treatment of American exports; Prime Minister Mark Carney rejected that premise, arguing the U.S. goods deficit reflects its large energy purchases from Canada, and said the retaliatory tariffs, though costly, were needed to protect Canadian workers.

The two countries share one of the world’s largest trading relationships — roughly $715 billion a year — and economists warn continued escalation could impose heavy costs, hitting small businesses hardest. 

U.S. spirits exports to Canada have already fallen more than 70 percent as provinces pull American liquor from shelves. Ottawa is reportedly exploring closer trade and security ties with the EU, raising the prospect that sustained confrontation could gradually loosen North America’s deep economic integration.