The US has prohibited imports of certain Canadian alcoholic beverages, motorcycles, and dairy products from 29 September 2026, escalating trade tensions following Canada’s retaliatory tariffs and raising further concerns over the future of the USMCA.
The US has prohibited imports of Canadian alcoholic beverages, motorcycles, and dairy products, effective 29 September 2026, according to notices published on the White House website on 8 September 2026.
The bans cover spirits including whisky, bourbon, rum, vodka, brandy, tequila, and mezcal, alongside beer and wines. Dairy restrictions target whey protein, invert molasses, and cane molasses.
The development follows Canada’s retaliatory tariffs on approximately USD 20 billion of American goods, which took effect after midnight on 8 September. The Canadian levies themselves responded to 50% tariffs the US imposed on roughly USD 20 billion of Canadian goods in August 2026, after multiple rounds of negotiations collapsed.
Expanding trade friction threatens USMCA
The US also added various cheese products to a 50% tariff list without outright banning them. Paper, aluminium, wood, furniture, and lighting products received similar treatment. Additionally, President Donald Trump’s pre-existing threat to increase tariffs on Canadian vehicles from 25% to 50% on 1 January 2027 remains in effect, according to a US official.
The escalating dispute has raised concerns about the viability of the US-Mexico-Canada Agreement (USMCA), which succeeded NAFTA and has underpinned North American commerce for decades.
Currently, Canada ships nearly 68% of its total exports to the US, with approximately 80% of those shipments moving duty-free under USMCA exemptions. The Depression-era law under which recent tariffs were imposed does not permit Ottawa to exercise these exemptions.
Political pressure and economic stakes
Canadian Prime Minister Mark Carney stated on 8 September that Canada possesses “everything needed to pivot and prosper” away from reliance on American trade, though he acknowledged the transition would incur costs.
Dominic LeBlanc, Canada’s minister responsible for bilateral US trade, criticised the latest US measures and confirmed ongoing contact with US Trade Representative Jamieson Greer regarding alternative paths forward.
Canada’s counter-tariffs cover USD 20 billion in American goods, with duties ranging from 15% to 50% across steel, furniture, clothing, and electronics. Officials noted the measures target sectors in competitive states such as Michigan and Ohio ahead of the November 2026 US midterm elections.
