US government escalades trade tensions with outright bans on Canadian imports

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The United States will enforce outright import bans on select Canadian products starting September 29, 2026, marking a major escalation in the trade conflict with its largest trading partner. This move goes beyond the 50% tariffs already imposed since July, targeting dairy products, alcoholic beverages, and motor vehicles. Ottawa retaliated on September 8 with tariffs on approximately $20 billion in US exports, particularly in steel and dairy sectors. Washington has also excluded Canadian goods from federal procurement processes, valued at $50 billion, citing Section 338 of the Tariff Act of 1930 as the legal basis.

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