US banning dairy products, most alcohol and motorcycles from Canada in
growing trade war
[September 09, 2026] By
ROB GILLIES and PAUL WISEMAN
TORONTO (AP) — The United States is banning the import of some dairy
products and motorcycles from Canada along with most alcoholic
beverages, the White House said Tuesday, as part of a trade war that
shows little sign of cooling off.
The ban will take effect Sept. 29 and comes after retaliatory tariffs
promised by Canada kicked in earlier Tuesday on $20 billion in U.S.
imports. Canada had responded to tariff moves by U.S. President Donald
Trump after trade talks between the countries broke down last month.
Trump also moved to shut Canadian products out of large, long-term U.S.
government contracts and directed the U.S. General Services
Administration to declare Canadian products ineligible for those
contracts until Canada allows “full and fair reciprocity″ for American
products.
Canadian Prime Minister Mark Carney said Canada’s strategy was about
becoming more independent and vowed to speed those efforts. “It’s about
ensuring that no country can hold us hostage. And that we can live how
we want to live," he said.
The rupture has upended one of the world’s closest relationships. On
Aug. 22, the U.S. imposed 50% tariffs on about 5% of Canadian imports,
charging that Canada had unfairly treated the American dairy, alcoholic
beverage and auto industries.
The U.S. and Canada have long sparred over trade, particularly Canada’s
protected dairy market and its subsidies for producers of softwood
lumber. But they remained friends and staunch allies.
Under Trump, U.S.-Canada relations have deteriorated rapidly. In
addition to imposing tariffs on Canadian products, Trump has repeatedly
made inflammatory comments about making Canada the 51st U.S. state.
Carney came to power in a come-from-behind political victory last year
by promising to stand up to him.
Some Canadian provinces have banned the sale of U.S. alcoholic products
— a move that prompted the retaliatory U.S. ban on Tuesday on various
Canadian wines and spirits. Also subject to the ban are some motorcycles
and mopeds, dairy products, including whey, and various types of
molasses.
Canada is exploring ties with the European Union that could stop just
short of membership, a Canadian official familiar with the discussions
said.
Options could include expanding existing agreements, negotiating a new
treaty or creating other forms of cooperation. The official said Canada
is already consulting provinces, territories and labor groups about what
a deeper relationship with the EU could look like, but no model has been
chosen.
The official spoke on condition of anonymity because they were not
authorized to discuss the talks publicly.
Carney is due in Strasbourg, France, next week, where he will attend
European Commission President Ursula von der Leyen’s State of the
European Union address Sept. 16 and address the European Parliament the
following day.
Canada looks beyond the US
Carney acknowledged the trade actions would cause short-term pain but
said they would push Canada to move faster on investment, infrastructure
and trade diversification.
“It was easy business, but it meant we relied too much on one economic
partner,” he said. “That time is over.”
More than 70% of Canadian exports still go to the United States,
underscoring the scale of Carney's push to diversify trade. He said
Canada’s exports to other countries are rising sharply and are on track
to double over the next decade.
Canada retaliates as Trump responds
Carney defended the retaliation, saying Canada could not let American
goods enter tariff-free while Canadian companies face U.S. tariffs.
Canada was not seeking to escalate the confrontation, he said, but the
tariffs were necessary to protect Canadian workers.
[to top of second column] |
Prime Minister Mark Carney speaks to journalists as he arrives at
the Office of the Prime Minister and Privy Council in Ottawa,
Canada, Tuesday, Sept. 1, 2026. (Justin Tang/The Canadian Press via
AP)
 Carney said the larger problem was
what Washington had sought in the failed negotiations.
“The most fundamental issue is that the cumulative U.S. demands
revealed that they wanted us to become even more reliant on them,
not less,” he said. “In too many areas, they wanted dependency, not
a true economic partnership.”
The prime minister said Washington sought limits on French-language
and cultural protections, influence over future trade deals and
terms that would weaken the auto, steel and forestry sectors.
How the trade war ends could carry consequences far beyond Canada,
testing whether a smaller U.S. ally can resist Trump’s economic
pressure without being forced to yield.
Earlier on Tuesday, a Canadian official said Ottawa did not intend
to change course regardless of whether Trump responded with nothing
or what the official called a “nuclear response.” The government’s
strategy will remain focused on building more at home and
diversifying trade abroad, the official said.
The tariffs hit hundreds of American products, including steel,
aluminum, cheese, appliances, clothing, cosmetics and farm
equipment, at rates of 15%, 25% or 50%. They cover about $20 billion
in American goods, roughly 6% of the $333.6 billion the United
States exported to Canada last year.
Since Canada-U.S. trade talks collapsed Aug. 21, Trump and his
administration have imposed additional tariffs and issued a series
of threats and attacks portraying Canada as weak and dependent.
Trump’s trade war and repeated talk of making Canada the 51st state
have fueled anger across the country. Canadians have sharply cut
travel to the United States and boycotted U.S. goods, moves Carney
praised as signs of national resolve.
British Columbia Premier David Eby said the province will install
new signs at U.S. border crossings reading: “Welcome to British
Columbia, Canada. Strong, proud and will NEVER be the 51st state.
Sorry!”
“While our kindness is one of our greatest strengths, you should
never, ever mistake that kindness for weakness,” Eby said.
Neither side is rushing back to the table
Canada-U.S. Trade Minister Dominic LeBlanc said the government was
assessing the latest U.S. tariff measures and that he remained in
contact with U.S. Trade Representative Jamieson Greer, adding that
Canada was ready to engage when Washington was.
The senior Trump administration official who briefed reporters
during a conference call late Tuesday that was arranged by the White
House said U.S. and Canadian trade representatives have had
“constructive conversations” and would speak again in coming days to
see if there's a “path forward.”
Former U.S. trade official Wendy Cutler said Carney’s public
approval rating, now topping 70%, gives him little reason to restart
talks.
“Clearly, at this point each side does not want to look too anxious
to reengage in fear of looking weak,” she said.
___
Wiseman reported from Washington. Associated Press writer Darlene
Superville in Washington contributed to this report.
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