Trump bans Canadian alcohol in new trade war salvo

US President Donald Trump escalated his ongoing trade war with Canada on Tuesday, imposing bans on alcohol imports and raising tariffs on various products, with the conflict showing no signs of easing. Canadian Prime Minister Mark Carney maintained a firm stance, acknowledging that reducing economic ties with the United States would entail costs, but asserting that the benefits would surpass the drawbacks.

Various Canadian goods, ranging from mattresses to motorboats and golf carts, would be subject to a 50-percent surcharge starting from September 15, as outlined in a late Tuesday executive order issued by Trump. The import ban, which encompasses several alcoholic beverages and certain dairy products like whey, will commence on September 29, according to additional executive orders issued concurrently.

Canada retaliated with tariffs on Tuesday, targeting $20 billion worth of US imports, including steel, aluminum, and dairy goods such as cheese, as a response to the duties announced by Washington on August 22. Carney emphasized in a video address that Canada possesses all the necessary resources to adapt and thrive, emphasizing that the transition would come at a cost, but it falls short of the price of inaction.

On Monday, Trump threatened to hinder Bombardier Aviation, a Canadian aerospace company, unless the Quebec-based firm relocates manufacturing to the United States. In response, the aerospace company highlighted its role in creating tens of thousands of jobs across the United States, with direct employment in over 20 states, including Kansas, Texas, Arizona, and California.