Trump bans Canadian alcohol imports

US President Donald Trump has intensified his trade confrontation with Canada by imposing new restrictions on Canadian goods, including a ban on

US President Donald Trump has intensified his trade confrontation with Canada by imposing new restrictions on Canadian goods, including a ban on several alcoholic products and higher tariffs on a range of imports.

Under an executive order issued Tuesday, Canadian mattresses, motorboats, golf carts and other products will face a 50 per cent additional tariff from September 15. Separate measures will prohibit imports of certain Canadian alcoholic beverages and dairy products such as whey from September 29.

The latest steps came after Canada introduced retaliatory tariffs on about $20 billion worth of US goods. The Canadian measures target products including steel, aluminium and dairy items in response to new US duties announced in August.

Canadian Prime Minister Mark Carney defended Ottawa’s response and said Canada was prepared to reduce its economic dependence on the United States despite the expected costs.

Carney said the country had the resources and capacity to diversify its trade. He argued that the long-term benefits of strengthening Canada’s economic independence would outweigh the short-term difficulties.

Trump has also threatened further action against Canadian businesses. He said Canadian companies could be prevented from obtaining certain US government contracts and ordered officials to remove Canadian-origin products from federal procurement schedules.

The US president has separately threatened to restrict sales of Bombardier aircraft in the United States unless the Canadian company shifts more manufacturing south of the border.

The proposal has drawn concern from US lawmakers in Kansas, where Bombardier employs more than 1,200 people. Senators Roger Marshall and Jerry Moran said they were working to protect jobs linked to the company.

The growing dispute is creating particular pressure on Canada’s manufacturing sector, especially in central parts of the country. Economists expect the tariffs to weigh on the Canadian economy, although the overall impact could remain limited if alternative markets are developed.

Carney said Ottawa did not want to prolong the confrontation but maintained that retaliatory tariffs were necessary to protect Canadian workers and businesses.

Trade negotiations between Washington and Ottawa collapsed on August 21 after disagreements over proposed restrictions and other issues. No fresh talks have been announced since then.

Relations have also been strained by Trump’s repeated suggestions that Canada could become part of the United States. His remarks and other moves have fuelled nationalist sentiment in Canada.

Canada remains heavily dependent on the US economy. Around 60 per cent of Canadian imports come from the United States, while roughly 70 per cent of its exports are sold in the US market.

To cushion the impact of the trade conflict, the Canadian government has announced a $5.4 billion support package for affected businesses and workers.