US hits Canada with new import bans and tariffs in trade stand-off

Washington, DC: The United States has imposed new trade restrictions on Canada, banning specific categories of imports and adjusting existing tariffs following Canada's retaliatory tariffs on American goods. Senior US officials explained that President Donald Trump had signed proclamations under Section 338 of the Tariff Act of 1930, authorizing Washington to ban imports from countries perceived as unfairly treating US trade.

These measures affect three areas: Canadian dairy products, most alcoholic beverages, and motorcycles will be prohibited from entering the US, effective in about three weeks. Simultaneously, Washington has revised a previous round of tariffs in place since July 20. Certain goods such as cement, road salt, and specific medical supplies have been removed from the list, while new tariffs have been imposed on items like all-terrain vehicles, various cheeses, and motorboats, taking effect within a week.

Furthermore, the administration has directed federal procurement agencies to eliminate Canadian-origin goods from a $50 billion worth of government purchases. The threatened tariffs on Canadian cars and metals, initially scheduled to rise to 50 percent from January 1, remain in place. Canada and China were the only two nations to retaliate against Washington's tariff measures, instead of negotiating, while other powers like Japan and the European Union reached agreements.

The officials noted that Canada's provinces had previously prohibited American alcohol and restricted US firms from provincial procurement markets, which likely prompted the ban authority under Section 338. This incident is seen as a guideline for Washington's trade strategy, categorizing countries into negotiators and retaliators.

India, for instance, has avoided retaliation, pursuing a bilateral trade agreement with the US. Officials also dismissed concerns from some US lawmakers that the dispute could affect Republican prospects in upcoming midterm elections, stating that the targeted goods constitute a small portion of overall US consumption. The US has reportedly held constructive talks with Canadian Minister Dominic LeBlanc, with further negotiations expected, though no specific timeline for resolving the dispute before the new bans take effect has been provided.