Trump bans some Canada goods as trade war swells

The White House escalated its trade dispute with Canada late Tuesday, banning imports of Canadian alcohol and dairy products and raising tariffs on other goods to 50 percent.

President Donald Trump signed the executive orders in response to Canadian boycotts of US alcohol and new Canadian tariffs on American products.

What Canadian goods has Trump banned?

Trump's executive orders ban imports of Canadian alcoholic beverages and dairy products such as whey, starting September 29. Separately, Canadian goods including mattresses, motorboats and golf carts face a 50 percent tariff surcharge beginning September 15. A shorter list of products, including toilet paper, will be exempted from the earlier 50 percent tariffs.

One of the statements of presidential action describes how certain Canadian products will no longer be subject to the 50 percent tariffs that recently took effect after bilateral trade negotiations collapsed last month. The list of exempted products is significantly shorter than the list facing new duties.

Why is Trump in a trade war with Canada?

"President Trump is doing this to make sure, again, that we keep a level playing field, deter retaliation, and of course protect American production," a senior administration official told reporters on a call, speaking on condition of anonymity. The move comes as Ottawa has just imposed new tariffs on US products in response to duties Washington announced on August 22. The senior official said Canadians had been warned that their reaction would escalate the situation.

As justification for the alcohol import ban, Trump cited what he called "discriminatory" provincial boycotts of US booze. Since the start of Trump's tariff offensive last year, Canadians have launched a massive boycott of US products. Wines and spirits have disappeared from store shelves in most Canadian provinces, which hold a monopoly on their sale.

What did Trump demand from Canada?

Earlier on Tuesday, Trump threatened to exclude Canadian products from a government procurement program "unless Canada restores full and fair reciprocity for American Farmers and Companies." In a social media post, Trump said he was directing officials "to REMOVE Canadian-origin products from GSA's Multiple Award Schedules," referring to a General Services Administration program for long-term contracts. Such schedules account for over $50 billion a year, Trump added.

US trade lawyer Ryan Majerus said the move could widen the scope of impacted goods beyond those already hit by tariffs.