U.S. bans on imported Canadian motorcycle, dairy, alcohol products take effect as trade war drags on

Bans are limited in scope, but designed to test Ottawa's resolve, trade lawyer says

The United States' ban on select Canadian imports took effect just after midnight Tuesday, the the latest step in a feud that has already led to crushing tariffs on tens of billions of dollars' worth of goods.

The bans, published by the White House, apply to a range of products including Canadian alcoholic drinks, molasses, motorcycles and dairy byproducts.

The restrictions will deliver another blow to businesses already struggling in those sectors after months of tariffs and uncertainty, but don't encompass enough products to disrupt the national economy. One international trade lawyer said the strategy is designed instead to test Canada's resolve after 18 months of acrimony.

"It's just a way to try to mess with Canada," said Barry Appleton, co-director of the Centre for International Law at the New York Law School.

"Bans are really hard to get off. You can negotiate down a tariff — it's a number — but a ban is usually here to stay. And so what Washington's telling us here in Canada is: 'New ball game, new mayor, watch out.'"

The list of Canadian goods banned under five White House proclamations are as follows:

One analysis from Derek Holt, vice-president and head of capital markets economics at Scotiabank, found the bans on alcohol, dairy and motorcycles will be negligible because Canada sends very little dairy and few motorcycles south of the border. Alcohol exports are higher than the other categories, with around $1.2 billion worth sent to the U.S. last year.

"These actions are face-saving by the U.S. administration, not substantive in nature and that’s a positive," Holt said in a note to investors on Sept. 9.

The U.S. expanded its trade war with Canada earlier this month, announcing the bans alongside adjustments to the existing tariff regime. Various cheese products were added to a list of products subject to a 50 per cent tariff, but not banned outright. Some paper, aluminum, wood, furniture, lighting and other products were also added to the list.

A senior official with the Trump administration said the restrictions are designed to discourage other countries weighing whether to follow Canada's example in retaliating against the Trump administration's tariff-heavy economic policy.

Canada not 'desperate' to get a U.S. trade deal 'at any cost,' says minister

Trump suggests Canada will back down

U.S. President Donald Trump said Monday that he thinks a trade deal with Canada is still possible because "they're going to come to us and they're going to say, 'We need to get rid of all the tariffs.'"

"We're going to win everything," he told reporters in the Oval Office, suggesting it's Canada that has treated the U.S. unfairly.

"They're going to come in and they're going to say, 'Sir, we are sorry,'" Trump said.

"I think a deal will be made, but it's going to be a fair deal."

On Friday, the top U.S. trade envoy said Trump was "comfortable" with the state of the Canada-U.S. dispute and felt no rush to reach a new trade agreement.

"They [Canada] call us now and then and we have good conversations about potential deals. But there's no urgency on our side," U.S. Trade Representative Jamieson Greer told CNBC.

On his end, Canada-U.S. Trade Minister Dominic LeBlanc echoed Greer's assessment of the situation. He said Canada stands ready to negotiate a deal, but that he isn't "waiting by his phone" for the administration's call.

Hours before the ban went into place Tuesday, a spokesperson for LeBlanc said the government's priority remains protecting and supporting Canadian workers and businesses from "these unjustified actions."

"Our core focus is on what we can control: building strength at home, diversifying our partnerships abroad, and building Canada strong for all Canadians,” Gabriel Brunet said in a statement.

As insults fly around trade, negotiators for Canada and the U.S. avoid getting personal in public

ANALYSIS: Trade 'war' or not, are Canada and the United States now dug in?

The two countries have been embroiled in a trade dispute since Trump took office for his second term in early 2025, but the relationship sank further after negotiations for a new deal fell apart at the 11th hour in August. Afterward, each side blamed the ⁠other for spoiling what seemed to be the closest chance at an agreement in months.

The U.S. slapped 50 per cent duties on roughly $28 billion of Canadian goods on Aug. 22, after the deal fell apart, and Canada responded with dollar-for-dollar retaliatory tariffs on Sept. 8. Those measures added to existing U.S. levies on Canadian steel, aluminum, autos and lumber.

The feud between the two countries has led to crushing tariffs on tens of billions of dollars worth of cross-border goods.

With files from Abby Hughes, Kevin Maimann and Brian Vinh Trinh