US ban on $1B of imports from Canada takes effect

The US ban on some $1 billion worth of imports from Canada, including alcoholic beverages, dairy products, and motor vehicles, went into effect on Tuesday.

President Donald Trump signed an executive order banning the sale of certain goods imported from Canada in the US.

While the restriction on nearly $1 billion worth of products is not expected to create a major economic impact compared to the $880 billion annual bilateral trade volume between the two countries, the development marks a new phase in the ongoing trade disputes with Canada, a long-standing US ally and trading partner.

US Trade Representative Jamieson Greer said in a statement that these measures were a direct result of Canada's discriminatory treatment of critical American exports.

The list of banned goods imported from Canada includes select alcoholic beverages, dairy products, and motor vehicles.

In July, the US administration announced that it would apply a 50% tariff on certain Canadian goods, alleging that Ottawa engaged in discriminatory practices against American products, with those tariffs taking effect on Aug. 22.

In response, the Canadian government announced tariffs of 15%, 25%, or 50% on some US products, which came into force on Sept. 8.