White House Bans Some Canadian Dairy And Alcohol Imports, Escalating Trade War

Topline

The White House announced a ban on the imports of some dairy, alcohol and other products from Canada on Tuesday night, escalating a trade war against the neighboring country after it imposed retaliatory tariffs on U.S. goods worth $20 billion in response to a 50% levy on a range of goods imposed by President Donald Trump earlier.

Key Facts

In a statement, the White House said the bans are meant to counter Canada’s “latest retaliation” and address its “increased discrimination against U.S. commerce.”

The ban, which will go into effect on September 29, covers Canadian-made alcoholic drinks which was previously subject to Trump’s 50% tariffs, which the statement claimed was a response to Canada increasing its “discrimination” against U.S. alcoholic beverages.

The order also bans certain Canadian dairy products, including whey protein and molasses, with the White House accusing Canada of maintaining discrimination against U.S. dairy.

Certain Canadian-made motorcycles, mopeds and cycles are also subject to the import ban.

The order also reverses 50% tariffs issued on certain products like rock salt and cement to help “offset the burden to U.S. commerce.”

In addition to this, some Canadian products like cheeses, paper, certain aluminium and steel products were added to the list of products that now face a 50% tariff.

Trump continues his spat with Canada

Earlier on Tuesday afternoon, Trump lashed out at Canada once again in a Truth Social post, saying the country is not allowing American dairy farmers to “sell into the Canadian Market.” The president also claimed that Canada manufactures automobiles only because of “previous disastrous Trade Agreements while other Presidents were in Office,” even though the current free trade deal, the United States–Mexico–Canada Agreement, was signed during Trump’s first term. In the post, the president said he was directing the General Services Administration—which oversees federal government procurement—to remove Canadian-origin products from its “multiple award schedules.” The post added: “From now on, NO RECIPROCITY – NO ACCESS!”

Chief Critic

Dominic LeBlanc, the Canadian minister in charge of trade with the U.S., responded to the bans, tweeting: ” The Government of Canada is assessing the latest tariff measures from the United States. As has been the case for the last 18 months, our first priority remains on protecting and supporting Canadian workers, farmers, families, and businesses from these unjustified actions…I am in contact with Ambassador Greer. When the US is ready to engage, our government will work in good faith and constructively towards a more secure mutually beneficial trading relationship that fully respects Canadian sovereignty.”

key background

Canada’s retaliatory tariffs targeting nearly $20 billion worth of U.S. made goods went into effect early on Tuesday. The levies followed Trump’s 50% tariffs on a range of Canadian goods, including wine, dairy, cement, furniture, and ice hockey gear, which took effect last month after failed trade talks. Canada’s retaliatory tariffs of between 15% to 50% cover around 700 American goods, including steel, dairy, appliances, agricultural equipment, pulp and paper, and certain electronics.

further reading

Bombardier Responds To Trump’s Ban Threat—As Canada’s Retaliatory Tariffs Go Into Effect (Forbes)

This article was originally published on Forbes.com