Gulf · UAE Digital
President Donald Trump on Tuesday escalated the trade war with Canada by proposing to ban imports of autos, dairy products, and alcohol. This action follows Canada’s retaliatory tariffs, which took effect at midnight Tuesday. The ban on Canadian alcohol mirrors earlier provincial restrictions on American alcohol imposed after Trump’s tariffs on Canada.
The measures were signed under Section 338 of the Tariff Act of 1930, marking the first use of this law for tariffs on Canada since late August. Other banned imports include Canadian motorcycles. Additionally, existing tariffs on cement, road salt, and hospital pads were adjusted to include duties on all-terain vehicles, some cheeses, and motorboats, effective in three weeks (Sept. 29).
Trump’s plan for 50% duties on cars and trucks remains under review, with a potential implementation date of January 1. The U.S.-Canadian relationship has deteriorated significantly, with U.S. officials criticizing Canada’s tariffs. U.S.
Trade Representative Jamieson Greer noted that both China and Canada have retaliated against the U.S. for trade measures. Canada’s Prime Minister Mark Carney ended negotiations, citing unfair demands, while Trump’s administration has responded with threats, including renaming Lake Ontario as Lake America, which Canada has dismissed. Trump also threatened to restrict Bombardier’s sales in the U.S., though White House officials are reviewing implementation details.
Canada’s retaliatory duties on steel, dairy, household appliances, farm equipment, paper, and electronics (15%–50%) took effect recently. Carney warned that Canada will not return to negotiations until the U.S. shows seriousness. Meanwhile, Commerce Secretary Howard Lutnick is set to travel to Mexico on Wednesday to discuss trade relations with Mexico’s President Claudia Sheinbaum.
Source: NBC News
