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Photo by Andrew Harnik/Getty ImagesThe U.S. escalated its trade war with Canada following Ottawa’s tariff retaliation, moving to block imports of some products while slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to government contractors.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe measures announced by the Trump administration in a series of proclamations on Tuesday include bans on whey proteins, certain rye whiskies and other liquours, malt beer and certain grape wines, non-alcoholic beer and motorcycles. U.S. President Donald Trump had earlier hinted at the move in response to bans on U.S. alcohol products by several Canadian provinces.Trump also expanded the Section 338 tariffs — a power dating back to a Depression-era Smoot-Hawley tariff law that was first tested in August — by extending them to certain cheeses, animal hides, motorboats, certain aluminum and paper products, golf carts and mattresses.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe import bans for some Canadian dairy products and alcohol will take effect in three weeks, a senior administration official told reporters. Modifications to the Section 338 tariffs will come into force in one week. A White House fact sheet said the new tariffs would stack on top of the industry-specific duties already in place.But the Trump administration also excluded some products that had earlier been hit with the Section 338 tariffs, including salt, toilet paper, bed sheets, and whiskies and liqueurs in containers over four litres in size.Meanwhile, the senior administration official said Trump’s threats to increase Canadian auto tariffs to 50 per cent on January 1 remain in place. The official also said they expect to have a conversation with their Canadian counterparts in the coming days.U.S. Trade Representative Jamieson Greer called the latest U.S. measures a “natural consequence of Canada’s continued discriminatory treatment of crucial American exports, ranging from alcoholic beverages to dairy products to motor vehicles.”“President Trump will continue to leverage the tools at his disposal to defend the interests of American workers and exporters, and restore reciprocity in our bilateral trade relationships,” he said in a statement.Dominic LeBlanc, the minister responsible for Canada’s trade with the U.S., said he is in contact with Greer and that Ottawa is assessing Washington’s latest move.“When the U.S. is ready to engage, our government will work in good faith and constructively towards a more secure mutually beneficial trading relationship that fully respects Canadian sovereignty,” he said in a social media post.The Government of Canada is assessing the latest tariff measures from the United States. As has been the case for the last 18 months, our first priority remains on protecting and supporting Canadian workers, farmers, families, and businesses from these unjustified actions.…— Dominic LeBlanc (@DLeBlancNB) September 9, 2026In a Truth Social post earlier Tuesday, Trump also announced he would cut Canadian goods from U.S. government buyers “unless Canada restores full and fair reciprocity for American Farmers and Companies.”Trump said Canadian goods and services sold under the so-called Multiple Award Schedule are worth more than US$50 billion each year. The senior official later clarified that although the White House calculates the U.S. procurement market at that amount, Canadian companies don’t always account for all of it.The U.S. president’s actions are the latest salvo in a trade fight that has expanded well beyond tariffs. Talks between the U.S. and Canada on a trade truce collapsed at the last minute in August, leading the Trump administration to follow through with a 50 per cent tariff on billions in Canadian goods.Trump has since ordered Lake Ontario be renamed Lake America, prompting an outcry from Canadians and even some Republican allies at home. He’s also threatened to end sales of Canada-based Bombardier Inc. jets in the U.S. and raised questions over the value of Canada’s currency.Prime Minister Mark Carney has refused to back down. After the trade talks collapsed, he vowed to retaliate “dollar-for-dollar,” and on Tuesday counter-tariffs on hundreds of U.S. consumer goods, including motorcycles, cosmetics and cheese, went into effect. Carney’s government also increased duties on many U.S. steel items to 50 per cent from 25 per cent.The Canadian retaliatory duties threaten to wreak havoc on closely integrated supply chains, impacting key industries including auto manufacturing. The U.S. and Canada have been top trading partners for years, and the political stakes from an extended trade fight for both Carney and Trump are high.Canada’s measures could have a particularly damaging impact in states such as Michigan and Ohio that also boast key races in November’s midterm elections to determine control of the U.S. Congress. Trump is already facing voter angst over his economic agenda and a war with Iran that has caused energy prices to spike.In a statement on Tuesday, the Canadian Chamber of Commerce said the U.S. is “punishing Canada — by punishing themselves — for the whole world to see” with its latest trade measures.“Ultimately, we will end up back at the table because the math is the same. Together, we’re stronger. Apart, we’re weaker,” said Candice Laing, the chamber’s president and CEO. “It will be on the U.S. government to justify to its businesses, workers and communities the price for them of going it alone and paying more to do it.”Officials negotiated for weeks after Trump threatened to impose tariffs on Canada under a never-before-used authority. Since then, both countries have blamed each other for the intensifying trade fight, trading sharp rhetoric and in some cases insults.The threat against Bombardier prompted concern from Republican Senator Jerry Moran, who said in a post on X he reached out to the Trump administration “to make certain the President is aware of the significant contributions of Bombardier to Kansas,” including with jobs.Bombardier has sought to ease tensions, noting that it’s a major contributor to the U.S. aerospace sector with employees in more than 20 states. The company also touted plans to inaugurate a new facility in Fort Wayne, Indiana, this year.The trade war has already had ripple effects. Sapporo Breweries Ltd. is moving some production to the U.S. from Canada because of the 50 per cent tariffs imposed on beer exports from the country.With assistance from Paul Murphy, Gregory Korte, Derek Decloet, Ilena Peng, Meghashyam Mali, Thomas Seal and Derek Wallbank Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.