President Donald Trump’s agenda to keep multiple Canadian products from being imported into the United States took effect Tuesday, marking the latest development in the trade war between Canada and the U.S.
Trump previewed the ban on a variety of products, including certain alcoholic beverages, dairy products, and motorcycles, on Sept. 8, in response to tariffs Canada had slapped on the U.S.
The ban, impacting nearly $1 billion in Canadian imports, took effect this week. The ban targets whey products used in protein powder, motorcycles and mopeds with petrol engines larger than 800cc, molasses, and alcoholic beverages such as beer, wine, whiskey, and vodka. Its economic effect is likely to be minimal, as it affects only a fraction of the $880 billion in two-way annual trade between the two countries.
Trump’s latest tactic comes after trade negotiations between the U.S. and Canada collapsed over the summer, leading to rounds of tariffs between the countries.
Speaking about the import ban earlier this month, Canadian Prime Minister Mark Carney said that the impact it will have on his economy is “modest,” signaling Canada will not retaliate further.
Canadian Trade Minister Dominic LeBlanc decried the U.S.’s “illegal and unjustified tariffs” during a press conference on Friday, noting that the two countries are “trying to find alternatives to the current circumstances” but that they were “not going to sign a deal that’s bad for Canada.”
“We have said we will sign an agreement when we think there is one that is in the interests of Canada’s sovereignty and Canada’s economy … but we’re not waiting by the phone,” LeBlanc said.
On the U.S. side, officials have said they are “comfortable” with the relationship as it stands.
“They call us now and then, and we have good conversations about potential deals. But there’s no urgency on our side,” U.S. Trade Representative Jamieson Greer told CNBC on Friday. “We’re still getting what we need from them in terms of oil, gas, potash, all of these things … so there’s still a lot of strong trade between the two countries.”
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Trump expressed confidence that the Canadians would cave in, saying Monday he believes a “fair deal” with Canada is imminent.
“I think what’s going to happen is over the next three to four weeks, they’re going to come to us, and they’re going to say, ‘We’re going to get rid of all the tariffs.’ We’re going to win everything,” the president said. “They’re gonna come in, and they’re gonna say, ‘Sir, we are sorry.’”