Washington, Sep 29 (IANS) The United States on Tuesday began enforcing import bans on specified Canadian alcohol, dairy and other products, widening a trade confrontation between the neighbouring countries as businesses face overlapping tariffs and restrictions.
The bans were announced by President Donald Trump on September 8 in response to Canadian retaliatory tariffs covering about $20 billion in American exports.
They took effect on September 29.
The White House said the action was aimed at countering what it described as Canada’s continued discriminatory treatment of US commerce.
Trump signed five proclamations under Section 338 of the Tariff Act of 1930. That provision allows a president to restrict or exclude products from countries found to be discriminating against American commerce.
The new measures ban specified Canadian alcoholic beverages and other products that were already covered by 50 per cent tariffs imposed under an earlier proclamation.
They also prohibit imports of certain Canadian dairy products and other goods that had faced the same tariff rate.
The White House said Canada had maintained discrimination against American alcoholic beverages, dairy products and motor vehicles.
The administration also changed the product coverage of tariffs announced in July. Rock salt and cement were removed, while products ranging from all-terrain vehicles to additional dairy goods were added.
Those revisions took effect on September 15. The import bans followed two weeks later.
The Section 338 measures apply to covered Canadian goods even when they qualify under the US-Mexico-Canada Agreement. They also operate in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962.
The White House said Canada had imposed new retaliatory tariffs on American steel, dairy products and agricultural equipment after ending bilateral trade talks last month.
It described the US measures as necessary to protect American farmers, manufacturers and workers. The administration also said the restrictions were intended to reduce disadvantages faced by US exporters in the Canadian market.
Democratic senators from states with close economic ties to Canada have sharply criticised the escalation.
“The states we represent rely on Canada as a key trading partner and our primary export market,” Senators Amy Klobuchar, Chris Coons, Patty Murray, Jeanne Shaheen and Elissa Slotkin said in a joint statement.
“We have deep ties with our neighbours to the north, and we share one of the world’s most enduring defence partnerships,” they said.
The senators warned that the tariffs would increase expenses for businesses and consumers.
“His tariffs will squeeze our states’ small businesses and farmers harder and drive costs up for working families,” they said.
The lawmakers said higher trade barriers could raise the cost of lumber, plywood and construction equipment used to build housing. They also warned of damage to manufacturers of automobiles, aircraft and machinery.
“They will drive up the prices consumers pay for everyday basics like milk, clothing, and paper products,” they said.
Klobuchar is sponsoring legislation to revoke the latest global tariffs and the 50 per cent duties imposed on Canada. She has also introduced bipartisan legislation that would require congressional review and approval of new tariffs within 60 days.
The United States and Canada share one of the world’s largest trading relationships. Their supply chains are closely integrated across the automobile, energy, agriculture, construction and manufacturing sectors, making new barriers capable of affecting businesses on both sides of the border.
Canada, the United States and Mexico replaced the North American Free Trade Agreement with the US-Mexico-Canada Agreement in 2020. The pact preserved largely tariff-free regional commerce, but it did not eliminate the ability of governments to invoke national security and other trade laws to impose additional restrictions.
–IANS
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