Trump escalates tariff war with Canada with sweeping import bans from key industries

Donald Trump threatened to ban Canadian-made products from US federal contracts unless Canada allows greater access for American imports
Donald Trump is banning most Canadian alcohol, motorcycles, whey, molasses and nonalcoholic beer imports from September 29 (Anna Moneymaker/Getty Images)
Donald Trump is banning most Canadian alcohol, motorcycles, whey, molasses and nonalcoholic beer imports from September 29 (Anna Moneymaker/Getty Images)

WASHINGTON, DC: The Trump administration is turning up the heat in its tariff fight with Canada as it moves to block imports of select cars, dairy products, and alcohol from its northern neighbor.

The bans were announced less than 24 hours after Canada imposed tariffs on $20 billion in US imports, a retaliatory measure taken after the White House slapped tariffs on $20 billion in Canadian goods.

President Donald Trump speaks in the Oval Office of the White House, Thursday, Aug. 27, 2026, in Washington. (AP Photo/Manuel Balce Ceneta)
President Donald Trump speaks in the Oval Office of the White House, Thursday, August 27, 2026, in Washington (AP Photo/Manuel Balce Ceneta)

The latest move pushes the two North American trading giants deeper into a trade standoff, with both governments tightening restrictions despite decades of close economic ties and deeply intertwined markets.

Amid the escalating tension, the Trump administration has accused Canada of unfair trade practices, while Canadian officials have accused the US of making unreasonable demands that led to the collapse of a recent trade deal.

US targets Canadian products with tariffs

Senior administration officials told reporters that the US will impose an outright ban on most Canadian alcohol imports beginning at 12:01 am on September 29.

The restrictions will also cover Canadian motorcycles, whey, molasses, and nonalcoholic beer from the same date, according to proclamations signed by President Donald Trump.

The proclamation was signed under Section 338 of the Tariff Act of 1930, a law that remained unused until Trump implemented new tariffs on Canada under the statute in late August.

SAN JOSE, CALIFORNIA - APRIL 17: The American and Canadian flags are seen before the Bay FC and Ottawa Rapid FC at PayPal Park on April 17, 2026 in San Jose, California. (Photo by Eakin Howard/Getty Images)
The American and Canadian flags are seen before the Bay FC and Ottawa Rapid FC at PayPal Park on April 17, 2026 in San Jose, California (Eakin Howard/Getty Images)

The administration is also set to impose an additional 50% tariff on Canadian cheese, steel, aluminum, and bamboo furniture starting next Tuesday.

At the same time, some existing tariffs on products including toilet paper, cement, and fishing rod parts will be lifted following further government analysis of their economic impact, a senior administration official said.

In the trade actions, the White House also accused Canadian officials of having “ceased negotiating in good faith” and failing to remove trade barriers during last-minute talks aimed at preventing a new round of tariffs threatened by Trump last month.

Trump targets Canadian goods in federal contracts

As import bans were announced on Tuesday, September 8, Trump threatened to ban Canadian-made products from federal government contracts unless the Canadian government opens up to US imports.

“This is the case even though Canada gets broad access into the massive American Government Procurement Market, including those of our States. That is not reciprocity; it is a Canadian Trade Scam,” Trump wrote in a long Tuesday afternoon post on Truth Social.



“From now on, NO RECIPROCITY – NO ACCESS! I am hereby directing the GSA, working with the USTR, to take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies,” he continued.

This came after Trump threatened to ban the sale of Bombardier, a Canadian airplane maker.

"NO MORE SELLING BOMBARDIER IN THE UNITED STATES! Their products aren't good enough!" he wrote, adding that they must build in the United States.

Bombardier says the company employs thousands of Americans across nine major facilities. Republican Sens Roger Marshall and Jerry Moran of Kansas publicly defended the Montreal-based company, saying it creates thousands of jobs in their state.

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