Trump Imposes Ban on Canadian Dairy, Alcoholic Beverages, and Motorcycles

President Trump has invoked a century-old trade law to ban imports of Canadian dairy products, alcoholic beverages, and motorcycles. The bans, effective September 29, target 14 categories of dairy products, including whey protein concentrates and processed whey, as well as 14 categories of alcoholic beverages, such as malt beer and sparkling wine.

The president used Section 338 of the Tariff Act of 1930 to impose the bans. This provision allows the president to block imports from countries deemed to be discriminating against American commerce.

Canada received no advance notice that the bans, rather than tariffs, would be imposed. The decision marks a significant escalation in the trade dispute between the two nations, with Canada imposing $27.6 billion in retaliatory tariffs on U.S. goods just hours before Trump signed the proclamations.

The Bank of Canada has already flagged 'upside risks to inflation' from the current tariff environment, and economists at Goldman Sachs estimate that the retaliatory cycle could subtract 0.3 percentage points from Canada's economic growth while adding 0.3 points to its inflation rate.