U.S. Announces New Tariffs and Import Bans on Alcohol, Dairy, and Motor Vehicles

Canada-U.S. trade tensions moved into another round on September 8, with President Donald J. Trump issuing five proclamations affecting Canadian goods just as Canada’s new counter-tariffs took effect.

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Credit Hermes Rivera/ Unsplash

Ottawa’s response, announced by Finance Minister François-Philippe Champagne and other ministers, covers $27.6 billion in U.S. imports, with duties of 15, 25 and 50 per cent, alongside a $7.5 billion support package.

The White House says Canada “ceased negotiating in good faith.” Canada, meanwhile, said talks were suspended after U.S. terms were considered unacceptable.

The result is a sharper cycle of tariffs, exclusions and import bans, with more deadlines approaching this month.

Here are the new tariffs and bans announced Tuesday:

 
  • Motor-vehicle import ban: The most targeted motor-vehicle action is an outright U.S. import ban on Canadian motorcycles, including mopeds and cycles, fitted with reciprocating internal-combustion piston engines above 800 cc.
    • It takes effect September 29. Products imported before that date but awaiting entry for consumption remain subject to the 50 per cent tariff.
    • The White House says Canada maintained its motor-vehicle tariff scheme. Canada’s response keeps existing automobile counter-tariffs in place while adding new duties and financial support for tariff-hit businesses and workers.
  • Motor-vehicle tariff scope changes: The motor-vehicle proclamation reshapes the existing 50 per cent Section 338 tariff list from September 15.
    • New products include certain cheeses, paper, steel and aluminum structures, golf carts, small-engine passenger vehicles, motorboats, furniture, mattresses and lamps.
    • At the same time, salt, Portland cement, some tissue products, refined lead, switchgear and fishing-rod parts come off the list.
    • For Canadian exporters, the measure widens exposure beyond autos even though Washington links the action to Canada’s motor-vehicle tariff scheme across multiple unrelated sectors.
  • Alcohol import ban: Washington is moving beyond tariffs on selected Canadian alcoholic beverages to an import ban beginning September 29.
    • This covers products including packaged beer, sparkling and other wines, cider, sake, whisky, rum, gin and vodka, with specific packaging limits for some categories.
    • Goods imported before September 29 but not yet entered for consumption remain subject to the 50 per cent duty.
    • The White House also points to Saskatchewan’s additional 50 per cent levy on U.S. alcohol, effective September 8, too.
  • Alcohol tariff scope changes: A separate alcohol-related proclamation changes which Canadian products face the 50 per cent Section 338 duty from September 15.
    • The expanded list reaches well beyond beverages, adding numerous cheeses, certain fats and oils, hides, furs and motorboats.
    • Two categories are removed: certain whiskies and liqueurs or cordials in containers holding more than four litres.
 
  • Dairy import ban: Certain Canadian products tied to the dairy dispute will also be barred from U.S. importation starting September 29.
    • The listed goods include whey protein concentrates, several forms of whey, molasses and non-alcoholic beer.
    • Products imported before the ban takes effect but not yet entered for consumption remain subject to the earlier 50 per cent duty.
    • Washington says the step follows Canada’s continued tariff-rate quota allocation measures involving U.S. cheese, turning part of the tariff fight into a direct market-access restriction.

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