US ban on $967 million in Canadian alcohol, dairy, and motorcycles takes effect
The United States has barred nearly $1 billion in Canadian imports starting Tuesday, expanding trade restrictions on alcohol, dairy items, and heavy motorcycles.
Scope of the import restrictions
The United States prohibited nearly $1 billion in Canadian imports on Tuesday, September 29, 2026, putting presidential decrees signed earlier in the month into effect. The measures took force at 12:01 a.m. Eastern Daylight Time (04:01 GMT) and replaced 50% tariffs that Washington had levied on selected items since August. The prohibition covers alcoholic drinks including beer, wine, sparkling wine, whisky, vodka, and rum, alongside non-alcoholic beer, molasses, and dairy items such as whey and protein concentrates. Canadian-made motorcycles and mopeds equipped with combustion engines larger than 800 cubic centimeters are also barred from crossing the border.
According to calculations by Jacob Jensen, trade policy director at the American Action Forum, the measures apply to $967 million in Canadian exports based on 2025 commerce data. Alcoholic beverages represent 87% of that total value, reflecting specific targets chosen after multiple Canadian provinces pulled American liquor from retail shelves. The affected volume represents approximately €850 million, a small fraction of the roughly $880 billion in annual two-way commerce between the two countries.
- US applies 50% tariffs on $20 billion of Canadian goods as trade talks break down
- President Trump signs decrees ordering import prohibitions on selected Canadian products
- Trump criticizes Canadian trade practices during a White House address
- US import ban on Canadian alcohol, dairy, and motorcycles takes effect
Origins of the retaliatory measures
The current trade dispute escalated during the summer when President Donald Trump used a Great Depression-era statute to place 50% tariffs on approximately $20 billion of Canadian goods. The White House accused Ottawa of maintaining discriminatory practices against American vehicle, dairy, and alcoholic beverage producers. Ottawa responded by imposing matching tariffs between 15% and 50% on an equivalent dollar value of United States goods.
Following the collapse of bilateral negotiations in August, Trump signed presidential decrees on September 8 establishing the full import ban. US Trade Representative Jamieson Greer stated that the bans were a direct consequence of Canadian policies toward American exports. Legal analysts observed that the financial shock would remain limited because the summer tariff regime had already stopped most cross-border transactions for targeted products. Patrick Childress, a trade partner at Holland & Knight, described the practical effect on suppliers.
For a lot of these goods, the 50% was already acting as a de facto ban by making importation from Canada into the United States uneconomical.
Corporate and sector reactions
The restrictions hit specific manufacturing and agricultural sectors across Canada. Bombardier Recreational Products, based in Quebec, confirmed that its Can-Am Spyder and Canyon three-wheel motorcycle lines are excluded from importation into the United States. The manufacturer noted that the commercial effect would be delayed because shipments for the current period had already concluded. In agriculture, access to the dairy market remains a persistent friction point due to Canadian tariffs applied when foreign dairy imports exceed established quota thresholds. The ban also targets refined dairy inputs like whey and protein concentrates, which form a regular component of cross-border food processing supply chains.
- Banned goods (2025 baseline)
- 0.967 $B
- Summer tariff package
- 20 $B
- Annual two-way trade
- 880 $B
Diplomatic and regional tensions
The import restrictions arrive alongside wider political disagreements between Washington and Ottawa during Trump's second presidential term. In mid-September, Trump threatened to halt commerce with the European Union if Canada obtained associated member status, following remarks made by European Commission President Ursula von der Leyen. In a White House appearance on September 28, Trump repeated assertions that Canada treats the United States unfairly on commercial matters.
Additional disputes include presidential rhetoric concerning the possibility of absorbing Canada as the 51st US state. Furthermore, a late August directive updated the United States Geographic Names Information System to rename Lake Ontario as Lake America. Despite the friction, official United States government records show Canada remains the country's second-largest commercial trading partner globally.
