The U.S. just banned nearly $1 billion in Canadian imports—and 87% of it is booze

U.S. President Donald Trump has imposed a ban on nearly $1 billion worth of Canadian imports, primarily alcoholic beverages, dairy products, and motorcycles. The ban is part of an ongoing trade war that began with Trump imposing 50% tariffs on $20 billion worth of Canadian goods, accusing Canada of discriminating against U.S. dairy, auto, and alcoholic beverage producers.

Canada retaliated with tariffs on 50% of U.S. imports. The economic impact of the ban is expected to be minimal since the products already face Trump's tariffs. 87% of the banned imports are alcoholic beverages, which Canada banned in some provinces in response to Trump's actions. The ban also covers some dairy products and motorcycles.

The impasse threatens the US-Mexico-Canada Agreement, a trade pact that Trump pressured Canada to accept in his first term. Canadian Prime Minister Mark Carney has been actively seeking alternative trading partners and reducing Canada's reliance on the United States, which accounted for more than 70% of Canadian exports last year.