Trump orders import bans on Canadian dairy, alcohol and motorcycles

Trump deploys untested Section 338 of 1930 Tariff Act

President Trump on Tuesday signed orders banning the importation of many Canadian dairy products, alcoholic beverages and motorcycles from the United States in three weeks, a retaliation for Canadian tariffs that took effect the same morning on roughly $20 billion of U.S. goods. The tariff modifications will take effect Sept. 15, while the trade prohibitions are scheduled to begin Sept. 29, according to proclamations posted on the White House website.

The order also modifies the scope of existing 50% tariffs on Canada. Trump removed levies on cement, road salt and some hospital products, while imposing 50% duties on other goods including some boats, all-terrain vehicles and cheeses. A senior Trump administration official said the $20 billion volume of Canadian exports affected by the tariffs is unchanged after the modifications.

To impose the tariffs and trade prohibitions, Trump is using Section 338 of the Tariff Act of 1930. The provision allows the president to impose trade prohibitions or tariffs of up to 50% on countries deemed to discriminate against U.S. companies, but it has never been tested in court.

A senior administration official said the overall economic impact of the trade moves would initially be small, with the new prohibitions affecting only “single-digit billions” of trade volume. The official added that the U.S. measures are justified by province-level Canadian bans on U.S. alcohol products, but said the president’s team remains in contact with Canadian officials and conversations about a resolution could occur in the coming days.

In a post on X Tuesday evening, Dominic LeBlanc, Canada’s minister in charge of U.S.-Canada trade, said Canada is assessing the latest U.S. measures. “When the US is ready to engage, our government will work in good faith and constructively towards a more secure mutually beneficial trading relationship that fully respects Canadian sovereignty,” LeBlanc said.

Also Tuesday, Trump posted on Truth Social that he would direct the General Services Administration and the Office of the U.S. Trade Representative to remove Canadian firms from the agency’s “Multiple Award Schedules,” which connect federal, state and local government agencies with suppliers of a wide variety of products.

The latest U.S. actions come in response to Canada imposing tariffs of 15% to 50% on roughly $20 billion of U.S. goods Tuesday morning, covering products from electronics and appliances to dairy products. Those Canadian tariffs were themselves a response to Trump’s round of levies imposed in late August on $20 billion worth of Canadian goods, about 5% of Canadian exports to the United States.

That round of tit-for-tat tariffs was nearly averted. In late August, the two countries appeared close to an agreement, but negotiations broke down in the final hours before a U.S.-imposed deadline, with each government blaming the other for walking away. Trump’s action could invite further tariff retaliation that would hit industries in border states such as Michigan, New Hampshire and Maine, which have competitive midterm contests.

More escalation could come in the new year. Trump has threatened to raise levies on Canadian metals and vehicles to 50% on Jan. 1, 2027, and a senior administration official said Tuesday that the threat remains in effect. Trump has also posted on social media about banning aircraft sales from Canada’s Bombardier, but the official said the president is still reviewing options on that front and has not taken any action.