Washington, September 29, 2026 (Yes Punjab News)
The United States on Tuesday began enforcing import bans on specified Canadian alcoholic beverages, dairy products and other goods, widening the trade confrontation between the neighbouring countries as businesses face overlapping tariffs and restrictions.
The measures, announced by US President Donald Trump on September 8, were introduced in response to Canadian retaliatory tariffs covering approximately $20 billion in American exports. The restrictions came into effect on September 29.
The White House said the action was intended to counter what it described as Canada’s continued discriminatory treatment of American commerce. Trump signed five proclamations under Section 338 of the Tariff Act of 1930, which authorises the President to restrict or prohibit imports from countries found to discriminate against US commercial interests.
The new measures prohibit imports of specified Canadian alcoholic beverages and other products that were already subject to 50 per cent tariffs under an earlier proclamation. They also ban certain Canadian dairy products and other goods that had faced the same tariff rate.
According to the White House, Canada had maintained discriminatory practices affecting American alcoholic beverages, dairy products and motor vehicles.
The administration also revised the scope of tariffs announced in July. Rock salt and cement were removed from the list of covered products, while all-terrain vehicles and additional dairy goods were added. Those changes took effect on September 15, followed by the import bans two weeks later.
The Section 338 restrictions apply to covered Canadian goods even if they qualify for preferential treatment under the US-Mexico-Canada Agreement (USMCA). They are also imposed in addition to tariffs introduced under Section 232 of the Trade Expansion Act of 1962.
The White House said Canada had introduced new retaliatory tariffs on American steel, dairy products and agricultural equipment after ending bilateral trade talks last month. The US administration described its measures as necessary to protect American farmers, manufacturers and workers, and to address disadvantages faced by US exporters in the Canadian market.
The escalation has drawn criticism from Democratic senators representing states with close economic ties to Canada. Senators Amy Klobuchar, Chris Coons, Patty Murray, Jeanne Shaheen and Elissa Slotkin warned that the measures could increase costs for businesses and consumers.
“The states we represent rely on Canada as a key trading partner and our primary export market,” the senators said in a joint statement, highlighting the longstanding economic and defence ties between the two countries.
They argued that the tariffs would place additional pressure on small businesses and farmers while increasing expenses for working families.
The lawmakers also cautioned that higher trade barriers could raise the cost of lumber, plywood and construction equipment used in housing projects, while affecting manufacturers in the automobile, aircraft and machinery sectors.
“They will drive up the prices consumers pay for everyday basics like milk, clothing, and paper products,” the senators said.
Klobuchar is sponsoring legislation seeking to revoke the latest global tariffs and the 50 per cent duties imposed on Canada. She has also introduced bipartisan legislation that would require congressional review and approval of new tariffs within 60 days.
The United States and Canada share one of the world’s largest trading relationships, with closely integrated supply chains across the automobile, energy, agriculture, construction and manufacturing sectors. The new restrictions could therefore affect businesses on both sides of the border.
The US, Canada and Mexico replaced the North American Free Trade Agreement with the USMCA in 2020. While the agreement preserved largely tariff-free trade across the region, it did not remove governments’ ability to impose additional restrictions under national security and other trade laws.
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