Trump bans Canadian liquor, dairy goods as trade war escalates
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Washington, Sep 9 : US President Donald Trump has ordered bans on a broad range of Canadian alcoholic beverages, dairy products and motorcycles as his administration escalated its trade confrontation with Canada.
The import bans will take effect at 12:01 a.m. Eastern time on September 29, according to a series of White House proclamations. Canadian goods imported before that date but not cleared for consumption will remain subject to the existing 50 per cent duty.
A senior administration official told reporters on Tuesday (local time) that the measures were designed to counter Canadian retaliation, protect American production and restore what the White House considers a level playing field.
The official said the import bans would affect Canadian trade valued in the “single-digit billions”. Changes to the existing tariff list would not significantly alter the roughly $20 billion in trade covered by those duties.
“The actual economics of it is much more challenging for Canada than it is for us,” the official said, arguing that the measures covered about 0.1 per cent of overall US consumption.
The prohibited alcoholic beverages include packaged beer, sparkling wine, cider, sake, whisky, bourbon, rum, gin, vodka, tequila, brandy, liqueurs and other spirits.
Trump also barred designated Canadian dairy-related goods, including whey protein concentrates, modified whey, fluid whey, dried whey and several forms of molasses. Non-alcoholic beer is also covered.
A separate proclamation bars Canadian motorcycles and cycles fitted with engines exceeding 800cc.
Alongside the bans, Trump modified the range of Canadian products subject to the existing 50 per cent duties. Those changes will take effect on September 15.
The revised list adds several categories of paper, iron and steel structures, aluminium products, metal fittings, golf carts, small motor vehicles, outboard motorboats, furniture, mattresses and lamps. It also adds certain cheeses not made from cow’s milk.
The administration removed salt, Portland cement, refined lead, certain household paper products, switchgear assemblies and some fishing rod parts and accessories from the tariff list.
The official said the changes reflected feedback from businesses after the earlier duties took effect. Some products were removed because parts of the United States had a unique dependence on Canadian supplies that could not easily be replaced.
The official also confirmed that Trump’s plan to raise tariffs on Canadian vehicles to 50 per cent on January 1 remained in effect.
“The President's position on autos going up to 50 per cent on January 1st, that remains, that remains in effect,” the official said.
The White House, at the same time, is open to negotiations. The official said conversations with Canadian officials over the past several days had been constructive.
“Yes, that's always a possibility,” the official said when asked whether an alternative agreement could be reached. Another discussion with Canada was expected within days.
Trump first imposed the additional duties under Section 338 of the Tariff Act of 1930 through proclamations issued on July 20. Their implementation was briefly suspended after Canada expressed a commitment to address the disputed measures.
The suspension expired on August 22 after the White House said Canada had failed to remove them. Section 338 allows the President to impose duties of up to 50 per cent and, under specified conditions, bar goods from a country that maintains discrimination against US commerce.
The import bans will take effect at 12:01 a.m. Eastern time on September 29, according to a series of White House proclamations. Canadian goods imported before that date but not cleared for consumption will remain subject to the existing 50 per cent duty.
A senior administration official told reporters on Tuesday (local time) that the measures were designed to counter Canadian retaliation, protect American production and restore what the White House considers a level playing field.
The official said the import bans would affect Canadian trade valued in the “single-digit billions”. Changes to the existing tariff list would not significantly alter the roughly $20 billion in trade covered by those duties.
“The actual economics of it is much more challenging for Canada than it is for us,” the official said, arguing that the measures covered about 0.1 per cent of overall US consumption.
The prohibited alcoholic beverages include packaged beer, sparkling wine, cider, sake, whisky, bourbon, rum, gin, vodka, tequila, brandy, liqueurs and other spirits.
Trump also barred designated Canadian dairy-related goods, including whey protein concentrates, modified whey, fluid whey, dried whey and several forms of molasses. Non-alcoholic beer is also covered.
A separate proclamation bars Canadian motorcycles and cycles fitted with engines exceeding 800cc.
Alongside the bans, Trump modified the range of Canadian products subject to the existing 50 per cent duties. Those changes will take effect on September 15.
The revised list adds several categories of paper, iron and steel structures, aluminium products, metal fittings, golf carts, small motor vehicles, outboard motorboats, furniture, mattresses and lamps. It also adds certain cheeses not made from cow’s milk.
The administration removed salt, Portland cement, refined lead, certain household paper products, switchgear assemblies and some fishing rod parts and accessories from the tariff list.
The official said the changes reflected feedback from businesses after the earlier duties took effect. Some products were removed because parts of the United States had a unique dependence on Canadian supplies that could not easily be replaced.
The official also confirmed that Trump’s plan to raise tariffs on Canadian vehicles to 50 per cent on January 1 remained in effect.
“The President's position on autos going up to 50 per cent on January 1st, that remains, that remains in effect,” the official said.
The White House, at the same time, is open to negotiations. The official said conversations with Canadian officials over the past several days had been constructive.
“Yes, that's always a possibility,” the official said when asked whether an alternative agreement could be reached. Another discussion with Canada was expected within days.
Trump first imposed the additional duties under Section 338 of the Tariff Act of 1930 through proclamations issued on July 20. Their implementation was briefly suspended after Canada expressed a commitment to address the disputed measures.
The suspension expired on August 22 after the White House said Canada had failed to remove them. Section 338 allows the President to impose duties of up to 50 per cent and, under specified conditions, bar goods from a country that maintains discrimination against US commerce.
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