US-Canada relations, already tense, are likely to deteriorate further after the United States went ahead early on Tuesday with a decision to ban nearly $1bn worth of Canadian imports, including alcoholic beverages, dairy products and motorcycles.
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States → deteriorate → beverages
The ban amounts to barely a ripple in $880bn worth of annual two-way trade between the two northern neighbors.
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ban → amount → neighbors
But it marks another ratcheting up of Donald Trump’s second-term trade war with the US’s longtime ally and trading partner.
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it → mark → ally
The import ban “certainly won’t do anything to help the trade tensions between the United States and Canada’,’ said trade attorney Patrick Childress, a partner at Holland + Knight and a former US trade official.
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Childress → do → Holland
The latest sparring began over the summer when Trump reached back to a Great Depression law to impose 50% tariffs on about $20bn worth of Canadian imports, charging that Canada discriminates against US dairy, auto and alcoholic beverage producers.
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Canada → begin → producers
Canada promptly counterpunched with tariffs of 15%, 25% or 50%, matching US imports dollar for dollar.
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Canada → counterpunche → dollar
To punish Canada for retaliating against his tariffs, Trump decided to ban a list of Canadian products, effective 12.01 am Eastern time Tuesday.
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Trump → punish → products
Childress noted that the products on the banned list were already facing Trump’s tariffs.
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products → note → tariffs
“For a lot of these goods, the 50% was already acting as a de facto ban by making importation from Canada into the United States uneconomical,″ he said.
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he → act → States
Jacob Jensen, director of trade policy at the center-right American Action Forum thinktank, calculates that the ban would cover $967m worth of Canadian imports, based on 2025 numbers.
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ban → calculate → numbers
Of that, 87% would be alcoholic beverages that the US targeted because of some Canadian provinces responding to Trump’s provocations by banning US booze from store shelves.
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provinces → target → shelves
Also banned are some dairy products – including the milk byproduct whey.
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products → ban → whey
The two countries have long clashed over Canada’s attempts to protect its dairy industry from foreign competition by imposing hefty tariffs once dairy imports have exceeded a quota.
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imports → clash → quota
The ban also covers motorcycles.
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ban → cover → motorcycles
Bombardier Recreational Products (BRP) in Quebec confirmed that its three-wheel Can-Am Spyder and Canyon motorcycles “will be excluded from importation into the US’’.
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motorcycles → confirm → US
But BRP said the impact would probably not be felt until next year because it has completed most production and shipments for the current season.
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it → say → season
“This marks yet another escalation in the trade war that may result in further retaliation on the Canadian side,” Jensen said.
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Jensen → mark → side
He expects Canadian exporters and US importers “impacted by these bans will be highly motivated’’ to demand that trade officials on both sides find some way to reach a “resolution of this whole ordeal’’.
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officials → expect → ordeal
The impasse imperils efforts to renew the US-Mexico-Canada Agreement, a North American trade pact Trump pressured the US’s neighbors into accepting in his first term and which he once declared “the most modern, up-to-date, and balanced trade agreement in the history of our country’’.
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he → imperil → country
The deal allowed most goods to cross North American borders duty free.
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goods → allow → borders
But since returning to the White House last year, Trump has announced a series of tariffs that have clouded the future of trade in the region.
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that → return → region
Trump has directed most of his ire at Canada.
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Trump → direct → Canada
He is openly seeking to pull Canadian manufacturing south.
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He → seek → manufacturing
And he has inflamed public opinion in Canada by repeatedly suggesting that the country become the US’s 51st state.
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country → inflame → Canada
The Canadian prime minister, Mark Carney, came to power last year on a promise to stand up to Trump.
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minister → come → Trump
In addition to retaliating against Trump tariffs, Carney has sought to reduce Canada’s reliance on the United States, which last year accounted for more than 70% of Canadian exports.
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which → retaliate → exports
“There is now a price to be paid for access to the United States market,” Carney said earlier this month.
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Carney → be → market
Carney has embraced the prospect of Canada becoming the European Union’s first associate member.
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Canada → embrace → member