U.S. consumers to face higher prices on milk, cheese amid Canada's retaliatory tariffs

President Donald Trump escalated a trade dispute with Canada on Tuesday by imposing new restrictions and higher tariffs on various goods imported from the neighboring nation. The White House unveiled an executive order banning the importation of specific products, including alcoholic beverages and dairy items such as whey, effective September 29. Additionally, a 50% tariff will be applied to a range of Canadian items, such as mattresses, motorboats, and golf carts, starting September 15.

The restrictions come after Canada ended a bilateral trade agreement last month, leading to the suspension of 50% tariffs that had been in place. A senior administration official emphasized that the measures aimed to maintain a level playing field, discourage retaliation, and safeguard American production. They also noted that Canada had been warned that escalating the situation would have consequences.

Trump specifically targeted what he called "discriminatory provincial boycotts" of US alcohol products, citing the absence of these beverages from Canadian store shelves in most provinces, which hold a monopoly on sales. Since the onset of Trump's tariff campaign last year, Canadians had imposed a boycott on US products, particularly wines and spirits.

In a separate move, Trump threatened to exclude Canadian products from the General Services Administration's (GSA) Multiple Award Schedules, a procurement program worth over $50 billion annually. Such schedules are used for long-term contracts, and Trump directed officials to remove Canadian-origin products from these lists. US trade lawyer Ryan Majerus suggested that this action could expand the scope of impacted goods beyond those already targeted by the tariffs.