US import ban on Canadian alcohol, other products comes into effect

A new US import ban on several Canadian products, including many alcoholic beverages, went into effect Tuesday as US President Donald Trump’s economic war against one of his country’s largest trading partners deepens.

The ban was announced earlier this month and entered into force on Tuesday at 12:01 am US Eastern time.

It comes as the neighbouring nations have been locked in a cycle of spiralling trade tensions after talks to resolve the crisis broke down in August after days of meetings in Washington.

Since taking office for his second term, Trump has upended global trade by applying a slew of sometimes eyewateringly high tariffs on friends and foes alike.

The new import ban includes an array of alcoholic beverages, including beer, sparkling wine, brandy, sake and many types of liquor.

It also covers the dairy-based whey protein as well as high-powered motorcycles.

Trump announced the latest measures on Sept 8, after Canada imposed retaliatory tariffs applying to around US$20 billion in US exports.

The US president has justified the ban on Canadian alcohol products by pointing towards “discriminatory” boycotts and tariffs on US products of the same nature.

On Monday, he accused his country’s second-largest trading partner of being “entitled”.

“The problem is that they’ve treated the US very unfairly. They have been one of the worst countries in the entire world,” he told reporters at the White House.

Anti-US sentiment has been high in Canada since Trump took office, with the billionaire frequently referring to the country of 41.7 million people as the United States’ “51st state”.

In August, Trump signed an executive order to rename Lake Ontario, on the border with Canada, to “Lake America”.

The move sparked fury in Canada amid the broad wave of patriotism brought on by Trump’s hostility.

Although Carney is backed by Canadian public opinion, his country remains reliant on its southern neighbour. Nearly 60% of Canada’s imports come from the US, and about 70% of its exports go to the US market.

To help businesses and workers, Canada’s government has unveiled an aid package worth US$5.4 billion.

Still, the impact of Tuesday’s import ban could be “significant”, said Spirits Canada, a trade association for the country’s alcohol sector.

The US is by far Canada’s most important export market for spirits, with about 50% of Canadian spirits production tied to US demand.

“This leaves Canadian producers with limited ability to replace lost US demand in the near term,” said the association.

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