US bans nearly $1bn of Canadian imports in new trade escalation

The United States has begun banning nearly US$1 billion worth of Canadian imports, escalating a trade dispute with its longtime northern neighbour. The affected products include alcoholic beverages, some dairy goods and motorcycles. The ban took effect early Tuesday and follows US tariffs on Canadian imports and Canada’s retaliatory measures.

The economic impact may be limited because many of the products were already subject to tariffs. Trade attorney Patrick Childress said the 50 per cent duties imposed on some goods had effectively made imports uneconomic even before the ban. Jacob Jensen of the American Action Forum estimated that the banned products were worth US$967 million based on 2025 figures.

Alcohol accounted for 87 per cent of the total, while the list also included whey and other dairy products. Bombardier Recreational Products said its three-wheel Can-Am Spyder and Canyon motorcycles would be excluded from the US market. The company said the effect was unlikely to be felt until the following year because much of the current season’s production and shipping had been completed.

Canada has imposed tariffs ranging from 15 to 50 per cent on US goods in response to Washington’s measures. Canadian Trade Minister Dominic LeBlanc’s spokesman said Ottawa’s priority was protecting workers, farmers, families and businesses while diversifying trade relationships. The dispute could complicate efforts to renew the US-Mexico-Canada Agreement.

Canadian Prime Minister Mark Carney has sought to reduce reliance on the US, while President Donald Trump has said he expects Canada to return to negotiations and accept a deal he considers fair.