ع
President Donald Trump signed a proclamation on September 8 that bars certain Canadian alcoholic beverages from entering the United States, according to the White House. The restriction takes effect for goods imported on or after September 29 at 12:01 a.m. eastern time, while products already in transit will face previously set 50 percent duties. The White House cited continued provincial restrictions on US alcohol sales and Saskatchewan’s new 50 percent levy on American beverages as justification for the action.
Canada placed retaliatory tariffs on about 20 billion dollars worth of US goods including steel and furniture that entered into force the same day, Reuters reported. Those measures answered an earlier round of 50 percent US tariffs on a similar volume of Canadian imports that began in August. Prime Minister Mark Carney noted in a public address that reducing economic dependence on the United States would involve costs for his country.
Canadian imports of US alcoholic beverages dropped 81 percent in the 12 months through February 2026 from the year-earlier period, a Federal Register document from July showed. The initial US tariffs invoked Section 338 of the 1930 Tariff Act after talks over dairy, autos and alcohol access broke down. Most Canadian provinces had already removed American alcohol from store shelves in response to prior duties.
The latest prohibitions also cover motorcycles along with select dairy items and whey products, a senior Trump administration official told reporters on September 8. Additional 50 percent tariffs will apply to Canadian steel, aluminum, mattresses and bamboo furniture from the following week under separate notices. The administration removed duties on products such as toilet paper, cement and fishing rod parts after further evaluation of their effects.
US-Canada trade totaled nearly 900 billion dollars in 2025, with the targeted categories affecting integrated supply chains in manufacturing and agriculture, according to FreightWaves analysis of government data. Bank of Canada figures show that 55,000 manufacturing jobs were lost in Canada between January 2025 and January 2026 amid earlier tariff rounds. Oxford Economics projected that a full breakdown in trade relations could reduce US GDP by 1 trillion dollars cumulatively over a decade.
Tensions have extended beyond commerce to include President Trump’s floated idea of Canada becoming the 51st state and an executive order renaming Lake Ontario as Lake America, CBS News reported. No new negotiations have been scheduled since discussions collapsed in late August despite statements from both sides favoring an eventual agreement. The US Trade Representative’s office has maintained that Canadian practices continue to disadvantage American exporters in multiple sectors.
