File PHOTO: The United States is banning dairy products, most alcoholic beverages and motorcycles from entering Canada as Ottawa imposes retaliatory tariffs on $20 billion worth of U.S. imports. | Photo credit: CARLOS OSORIO
The United States is banning imports of dairy products, most alcoholic beverages and motorcycles from Canada, the White House said Tuesday, as the trade war between the two countries escalates.
The ban comes three weeks after Canada imposed retaliatory tariffs on US$20 billion worth of US imports earlier on Tuesday.
U.S. President Donald Trump on Tuesday moved to exclude Canadian products from major long-term U.S. government contracts as Canada’s retaliatory tariffs took effect and Prime Minister Mark Carney vowed to accelerate efforts to reduce the country’s dependence on the United States.
Trump has directed the U.S. General Services Administration to declare Canadian products ineligible for these contracts until Canada allows “full and fair reciprocity” on American products.
Earlier Tuesday, Carney said Canada’s strategy is to become more independent. “It’s about ensuring that no country can hold us hostage. And that we can live the way we want.” Canada is exploring the possibility of establishing ties with the European Union that could end just short of membership, a Canadian official familiar with the discussions said.
Options could include expanding existing agreements, negotiating a new treaty, or creating other forms of cooperation. The official said Canada was already consulting with provinces, territories and labor groups about what a deeper relationship with the EU might look like, but no model had been chosen.
The official spoke on condition of anonymity because he was not authorized to discuss the negotiations publicly.
Carney is due to arrive in Strasbourg, France, next week, where he will attend European Commission President Ursula von der Leyen’s State of the Union address on September 16 and address the European Parliament the following day.
The breakup upended one of the closest relationships in the world. The countries have deeply integrated economies and close defense and security ties, but Trump imposed a series of tariffs on Canadian goods despite negotiating and repeatedly praising the North American Trade Agreement during his first term. Many of these tariffs violate the pact.
Canada looks beyond the US ================ Carney acknowledged the trade actions would cause short-term problems, but said they would push Canada to move more quickly on investment, infrastructure and trade diversification.
“It was an easy business, but it meant we were relying too heavily on one economic partner,” he said. “That time has passed.” More than 70 percent of Canadian exports still go to the United States, underscoring the scale of Carney’s trade diversification efforts. He said Canada’s exports to other countries are growing sharply and could double over the next decade.
Canada retaliates against Trump
Carney defended the retaliation, saying Canada cannot allow American goods to enter duty-free while Canadian companies face U.S. tariffs.
He said Canada is not seeking to escalate confrontation, but the tariffs are necessary to protect Canadian workers.
Carney said the bigger issue was what Washington was seeking in the failed negotiations.
“The most fundamental problem is that the cumulative demands of the US showed that they wanted us to become more dependent on them, not less,” he said. “In many areas they wanted dependency rather than true economic partnership.” The prime minister said Washington was seeking to limit protections for French language and culture and influence future trade agreements and conditions that would weaken the auto, steel and forestry sectors.
How the trade war plays out could have ramifications far beyond Canada, testing whether a smaller U.S. ally can withstand Trump’s economic pressure without being forced to concede.
Earlier Tuesday, a Canadian official said Ottawa has no intention of changing course, regardless of whether Trump responds with nothing or what the official called a “nuclear response.” The government’s strategy will continue to focus on more domestic construction and diversifying foreign trade, the official said.
The tariffs hit hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15, 25 or 50 percent. They cover about $20 billion of American goods, about 6 percent of the $333.6 billion the United States exported to Canada last year.
Following the collapse of trade negotiations between Canada and the United States on August 21, Trump and his administration imposed additional tariffs and issued a series of threats and attacks, portraying Canada as weak and dependent.
Trump’s trade war and repeated talk of making Canada the 51st state have sparked anger across the country. Canadians sharply curtailed travel to the United States and boycotted American goods. Carney called the moves a sign of national resolve.
British Columbia Premier David Eby said the province will install new signs at US border crossings reading: “Welcome to British Columbia, Canada. Strong, proud and will NEVER be the 51st state. Sorry!” “While our kindness is one of our greatest strengths, you should never mistake that kindness for a weakness,” Eby said.
Published September 9, 2026