U.S. ban on nearly $1 billion of Canadian liquor, dairy and motorcycles takes effect
The White House used a Depression-era law to punish Ottawa for retaliating against earlier tariffs. Small Canadian distillers expect the biggest hit.
WASHINGTON — A U.S. ban on close to $1 billion a year in Canadian imports went into force at 12:01 a.m. Eastern time Tuesday, widening the trade fight between the two neighbors.
Alcoholic drinks make up the large majority of the blocked goods — about 87% by value. The list also covers dairy products such as whey, as well as Can-Am Spyder and Canyon three-wheel motorcycles built by Bombardier Recreational Products.
Why now
President Trump turned to a Great Depression-era trade law to impose the ban after Canada struck back against his 50% tariffs on about $20 billion of Canadian goods. The administration says Canada treats American dairy, auto and alcohol producers unfairly.
Ottawa called the measures unjustified and said its focus is protecting Canadian workers, farmers and businesses.
How much will it matter?
In dollar terms, the ban is small next to the roughly $880 billion in two-way trade between the countries each year, and earlier tariffs had already choked off much of this business. Trade lawyers say the bigger effect may be political, making it harder to calm tensions.
The pain is likely to fall hardest on small, independent Canadian distillers and brewers that rely on American tourists and U.S. shelf space, while larger firms can shift production to their U.S. plants.
Sources
This article was written by Statevane from the reporting and official sources linked above. Spot an error? Tell us.