The U.S. trade war with Canada shows no sign of letting up any time soon.
In the latest escalation, President Donald Trump said Tuesday he’s banning the importing of some dairy products, motorcycles and most alcoholic beverages from Canada, the country’s #2 trading partner.
The move comes after Canada’s own retaliatory tariffs kicked in Tuesday on some $20 billion of U.S. imports. Those tariffs were imposed by Canada in response to earlier tariffs added by Trump.
The ban takes effect Sept. 29.
Trump also moved to shut Canadian products out of long-term U.S. government contracts and directed the U.S. General Services Administration to declare Canadian products ineligible for those contracts until Canada allows “full and fair reciprocity″ for American products, according to a report from The Associated Press.
Canadian Prime Minister Mark Carney said Canada was trying to become “more independent. “It’s about ensuring that no country can hold us hostage. And that we can live how we want to live,” he said, according to AP.
On Aug. 22, the U.S. imposed 50% tariffs on about 5% of Canadian imports, with Trump saying Canada had “unfairly treated” the American dairy, alcoholic beverage and auto industries.
The U.S. and Canada have long sparred over trade, particularly Canada’s protected dairy market and its subsidies for producers of softwood lumber. But they remained friends and staunch allies.
In addition to imposing tariffs on Canadian products, Trump has repeatedly suggested making Canada the 51st U.S. state. Carney came to power in a come-from-behind political victory last year by promising to stand up to him, the AP wrote.
Some Canadian provinces have banned the sale of U.S. alcoholic products — a move that prompted the retaliatory U.S. ban on Tuesday on various Canadian wines and spirits. Also subject to the ban are some motorcycles and mopeds, dairy products, including whey, and various types of molasses.
