Trump Administration Hits Back at Canada with Import Bans, More Tariff Hikes

President Donald Trump responded to new tariffs on U.S. exports Tuesday by announcing bans on U.S. imports of Canadian motorcycles, dairy products and alcohol, and directed officials to restrict Canadian access to U.S. procurement programs.

From September 29, Canadian exports of beer, wine and other spirits, as well as certain dairy products like whey protein will no longer be permitted to enter the U.S. market, according to a trio of proclamations published Tuesday night.

The president deployed the same legal statute he used to hike tariffs on Canadian exports last month to implement the new import bans — Section 338 of the Tariff Act of 1930. The statute had never been used to impose tariffs or restrict imports, and is already facing legal challenges.

The official doubted the bans would pose significant supply chain or inflationary challenges. The bans and other tariffs actions, they said, were chosen to target products with limited U.S. imports and in industries where the U.S. has substantial domestic production and alternative sourcing options.

In addition to banning certain Canadian exports, the president also tweaked the scope of the existing 50 percent tariffs that went into effect last month, adding a slate of new products including cheeses, boats, metal products, and leather products, among other products beginning September 15, and excluding road salt, cement, certain hospital products, fishing rods and other products.