US bans Canadian alcohol, imposes 50% surcharge on goods in widening trade dispute
The United States has escalated its trade dispute with Canada, issuing executive orders that ban the import of certain Canadian alcoholic beverages and dairy products while applying a 50% surcharge on a range of other goods. The measures, announced on Tuesday (September 8, 2026), come after bilateral trade negotiations collapsed last month and in response to fresh Canadian tariffs on US exports.
Under the first executive order, a 50% surcharge will take effect on September 15 for a list of Canadian products that includes mattresses, motorboats, and golf carts. A second set of orders, scheduled to take effect on September 29, imposes an outright import ban on various alcoholic beverages and some dairy products, such as whey.
The presidential actions also remove a small number of items from the previously imposed 50% tariff list. The list of exempted goods is considerably shorter than the list subject to the surcharge, though toilet paper is among the items that will no longer face the higher duty.
A senior administration official, speaking to reporters on condition of anonymity, said President Donald Trump's moves are intended to "keep a level playing field, deter retaliation, and of course protect American production." The official said Canada had been warned that its retaliatory measures would lead to an escalation.
The new restrictions follow Canada's decision to impose tariffs on US products in response to duties that Washington announced on August 22. Since Mr. Trump launched a tariff offensive against Canada last year, consumers in Canada have widely boycotted US goods. In most Canadian provinces, where liquor sales are controlled by provincial monopolies, American wines and spirits have been removed from store shelves.
Citing those provincial measures, Mr. Trump said the ban on Canadian alcohol imports was justified by what he termed "discriminatory" treatment of US beverages.
Earlier on Tuesday, the American president also threatened to block Canadian products from government procurement programmes. In a social media post, he said he was directing officials "to REMOVE Canadian-origin products from GSA's Multiple Award Schedules," a reference to the General Services Administration's programme for long-term supply contracts. Mr. Trump said that such schedules account for more than $50 billion in annual spending.
Trade lawyer Ryan Majerus said the procurement directive could extend the impact of the trade measures beyond goods covered by tariffs, potentially affecting a broader range of Canadian industries. The latest orders are scheduled to be implemented over the coming weeks, adding to the existing trade restrictions between the two countries.
