US bans Canadian booze, bikes and dairy as trade war heats up

The US has banned a swath of Canadian alcoholic beverages, motorcycles and dairy products, sharply escalating an already bitter trade spat.

The import bans, effective September 29, were ​published on the White House's website after Canada's retaliatory tariffs kicked in at midnight Tuesday.

Those Canadian tariffs followed 50% US duties on some $20 ‌billion of Canadian goods last month, after several rounds of talks collapsed.

The breakdown has widened the rift between the longtime allies, with each side blaming the other for the failed negotiations. Canadian Prime Minister Mark Carney has urged a further shift away from the US, casting doubt on the viability of the US-Mexico-Canada Agreement.

"We have everything we need to pivot and prosper," Carney said in a YouTube video Tuesday. "That pivot will come at a cost. There's always a cost to action. But it doesn't come close to the cost of standing still." ​

The US ban appears to cover most booze, including beer and various types of wine, whisky, bourbon, rum, vodka, vermouth, tequila, mezcal, and brandy. The dairy ban covers whey protein, molasses and ​non-alcoholic beer, according to White House notices.

Various cheese products were also added to 50% tariff list, but not ⁠banned outright. Paper, aluminum, wood, furniture and lighting were also hit.

Hours before the latest import bans, President Donald Trump ordered Canadian products removed from US government contract lists.

"Canada has been ripping us off for years," he said, accusing America's northern neighbor of blocking US firms from federal and provincial government contracts. "That is not reciprocity, it is a Canadian Trade Scam."

"I am hereby directing the GSA (General Services Administration), working with the USTR (United States Trade Representative), to take all necessary steps to REMOVE Canadian-origin products from GSA's Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies," he wrote on Truth Social. "NO RECIPROCITY - NO ACCESS!" 

(With input from Reuters)