US to ban Canadian motorcycle, dairy, alcohol imports

The United States banned a broad swath of Canadian alcoholic beverages, motorcycles and dairy products from import on Tuesday, sharply escalating an already acrimonious trade spat. The import bans, which go into effect on September 29 and were published on the White House’s website, came after Canada’s own retaliatory tariffs on U.S. goods took effect after midnight on Tuesday. Those Canadian levies themselves followed 50% tariffs that the United States imposed on some $20 billion of Canadian goods last month, after several rounds of negotiations collapsed.
The breakdown has widened a rift between the longtime allies, who have blamed each other for the failed talks, spurred Canadian Prime Minister Mark Carney to urge a further shift away from Canada’s biggest trading partner, and cast doubt on the viability of the U.S.-Mexico-Canada Agreement. “We have everything we need to pivot and prosper,” Carney said on Tuesday in a video posted on YouTube. “That pivot will come at a cost. There’s always a cost to action. But it doesn’t come close to the cost of standing still,” he said. 
The U.S. bans appeared to cover most alcohol products, including beer and various types of wine, whisky, bourbon, rum, vodka, vermouth, tequila, mezcal, and brandy. The dairy ban covers whey protein, invert molasses, cane molasses and non-alcoholic beer, per notices on the White House’s website. In addition to the import bans, various cheese products were added to a list of products subject to a 50% tariff, but not banned outright. Some paper, aluminum, wood, furniture, lighting and other products were also added to the list.
Ottawa’s retaliatory measures, which in turn provoked Washington’s move on Tuesday night, were designed to put economic and political pressure on Washington, Canadian government officials said. Those counter-tariffs cover some $20 billion of U.S. goods, with duties ranging from 15% to 50% across products from steel and furniture to clothing and electronics, and are expected to hit sectors in some competitive states such as Michigan and Ohio, ahead of U.S. midterm elections in November.
While the tariffs affect a small amount of exports compared with total trade between the U.S. and Canada, some analysts worry the standoff could destabilize the U.S.-Mexico-Canada Agreement, the free-trade pact that succeeded NAFTA. Together they have underpinned commerce across North America for decades. “What we are worried about is an escalatory spiral,” said Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on bilateral U.S. economic relations.