The Trump administration is sharply escalating its commerce struggle with Canada, transferring past tariffs to ban sure Canadian merchandise from the U.S. market and prohibit Canadian items from long-term federal contracts.
The White Home introduced Tuesday that restrictions on Canadian alcohol, dairy merchandise and bikes will take impact Sept. 29, in keeping with the Related Press.
The Trump administration mentioned the import restrictions will cowl numerous Canadian wines and spirits, some bikes and mopeds, dairy merchandise together with whey, and sure varieties of molasses.
Fairly than imposing further tariffs on these merchandise, the White Home plans to exclude them from importation into the U.S. starting Sept. 29 if the dispute stays unresolved, in keeping with Yahoo Finance.
The restrictions got here hours after Canada’s retaliatory tariffs took impact at 12:01 a.m. Tuesday.
Canada’s duties vary from 15% to 50% and canopy a whole bunch of U.S. merchandise, together with metal, aluminum, cheese, home equipment, clothes, cosmetics and farm tools. Metal and aluminum tariffs have been doubled to 50%. Altogether, the measures have an effect on about $20 billion in U.S. items, equal to roughly 6% of American items exports to Canada final 12 months.
Canada has characterised the measures as a “dollar-for-dollar” response to U.S. tariffs. Washington’s tariffs cowl about $28 billion price of Canadian imports.
Associated: New Canadian tariffs hit $20B in US items, pressuring cross-border provide chains
Trump targets Canadian items in federal contracts
President Donald Trump additionally broadened the dispute past cross-border imports Tuesday by directing the Common Companies Administration to start eradicating Canadian-origin merchandise from its A number of Award Schedules, Reuters reported.
The schedules are utilized by federal businesses to buy services by way of long-term authorities contracts.
Trump mentioned the restrictions will stay except Canada restores what he described as “full and truthful reciprocity” for American farmers and firms.
The president mentioned Canada’s federal and provincial governments are stopping U.S. companies from competing in Canadian authorities procurement markets.
“I’m hereby directing the GSA, working with the USTR, to take all obligatory steps to REMOVE Canadian-origin merchandise from GSA’s A number of Award Schedules,” Trump mentioned Tuesday.
The commerce struggle escalation follows the collapse of U.S.-Canada negotiations on Aug. 21 and comes as each governments harden their positions.
Canadian Prime Minister Mark Carney mentioned Tuesday that the commerce battle may inflict financial ache however mentioned his authorities would proceed resisting U.S. calls for.
“We’ll do no matter it takes for so long as it takes,” Carney mentioned in keeping with the Related Press.
Carney has more and more framed Canada’s response as an effort to scale back the nation’s financial dependence on the U.S. Greater than 70% of Canadian exports at the moment go south of the border.
U.S. items exports to Canada totaled $333.6 billion in 2025, whereas imports from Canada reached $381.9 billion, in keeping with the U.S. Commerce Consultant.
Freight volumes from Canada to the U.S. (OTVI.CAN) has fallen round 16% since Sunday after surging on the finish of August, in keeping with SONAR, a freight market analytics and information platform. An enormous a part of the current lower will be attributed to the Labor Day vacation (Monday) within the U.S.
Why it issues: The escalating dispute is including new prices and uncertainty to one of many world’s largest buying and selling relationships and threatens deeply built-in cross-border freight and manufacturing provide chains.
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