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5d ago

U.S. Bans Some Canadian Dairy, Alcohol and Motorcycles and Expands Tariffs

President Trump invoked rare Section 338 powers to order import bans, procurement exclusions, tariff reshuffling to press Canada on reciprocity.

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Flags of Canada and United States fly across the international border on the Gordie Howe International bridge that connects Windsor, Ontario, Canada and Detroit, Michigan on September 6, 2026. Canada announced on August 25, 2026 counter-tariffs on US goods ranging between 15 and 50 percent, intensifying the trade war between the historically close allies. Ottawa's retaliation will take effect September 8, a timeframe earlier outlined by Prime Minister Mark Carney after US President Donald Trump's 50-percent duties came into place August 22, 2026. (Photo by JEFF KOWALSKY / AFP via Getty Images)
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Canadian and U.S. flags fly on both sides of the St. Clair River near the Blue Water Bridge, connecting Sarnia, Ontario, and Port Huron, Michigan, in Sarnia, Ontario, Canada, September 2, 2026. REUTERS/Carlos Osorio

Overview

  • President Trump signed five Section 338 proclamations on Tuesday that bar certain Canadian dairy, most alcoholic beverages and motorcycles from U.S. entry with the bans set to begin on Sept. 29.
  • The White House directed the General Services Administration to make Canadian goods ineligible for large, long‑term U.S. government contracts as part of the package of measures.
  • Ottawa’s dollar‑for‑dollar retaliatory tariffs on roughly $20 billion in U.S. goods took effect in early September and were paired with support programs for affected Canadian firms and workers.
  • Lawmakers from both parties have criticized the unilateral moves and are advancing proposals to curb presidential tariff authority, and analysts expect legal challenges under the rarely used Section 338.
  • Economists say the measures will hit specific sectors and cross‑border supply chains—notably dairy, alcohol, autos and aerospace suppliers—but are likely to have only modest effects on overall GDP while prompting Canada to seek trade diversification.