US to ban Canadian dairy products, alcohol, motorcycles:Effective from Sept 29, accused of discrimination in trade

US President Donald Trump has decided to ban Canadian dairy products, alcohol and motorcycles from September 29, after Canada imposed retaliatory tariffs of up to 50% on US goods. The order will block Canadian alcohol, wine and non-alcoholic beer, along with some dairy products, from entering the US. US officials said the ban was kept limited to prevent a sudden rise in prices for American consumers. Canada imposes tariffs of up to 50% on US goods Hours before Trump’s new ban, Canada imposed retaliatory tariffs of up to 50% on several US goods. Canada introduced the tariffs in response to US tariffs. Canadian Prime Minister Mark Carney has opposed Trump’s trade policy. Canada says it will impose tariffs on US goods worth roughly the same value as the goods targeted by US tariffs. ‘No equal access, no place in US market’, says Trump Trump has ordered Canadian goods to be excluded from US government purchases. He said Canada will not get access to US government procurement until it gives American farmers and companies equal and fair access to its market. Canada has not fully banned US companies, but has told government agencies to prioritise Canadian goods and services in contracts. Trump raises some tariffs, removes others Trump has also changed tariff rules on some Canadian imports. Several Canadian aluminium products will now face a 50% tariff. Meanwhile, some tariffs on bedsheets, fishing rods and tissue paper used in toilet paper have been removed. Trade dispute ongoing for 18 months The trade dispute between the United States and Canada has been continuing for nearly 18 months. After talks between the two countries broke down last month, tariffs and other trade restrictions have intensified. Both countries are putting pressure on each other by imposing new duties and restrictions on one another’s goods, increasing tensions in the long-standing, strong U.S.-Canada trade relationship. Five major reasons for the US-Canada dispute 1. New tariff war The biggest dispute is over tariffs. The US has imposed additional tariffs of up to 50% on around $20 billion worth of Canadian goods, including alcohol, dairy, furniture, hockey equipment and other products. After talks broke down, Canada decided to respond with dollar-for-dollar retaliatory tariffs. 2. Calling Canada the 51st state Trump has repeatedly suggested making Canada the 51st US state. He says the US gives Canada billions of dollars in trade benefits. Trump argues that if Canada became part of the US, trade imbalances and tariff disputes would end. 3. Calling Trudeau Canada’s governor Trump repeatedly referred to former Canadian Prime Minister Justin Trudeau as “Governor” in a mocking tone. Canadian politicians and the public viewed this as an insult to their sovereignty. 4. Border security, illegal immigration and fentanyl trafficking Growing border-security concerns have also fuelled tensions. The Trump administration has accused Canada of allowing increased illegal immigration and trafficking of dangerous drugs, particularly fentanyl, into the US through its northern border. Washington has urged Canada to strengthen border surveillance and immigration policies. 5. Dairy and agriculture dispute The US has long opposed Canada’s “supply management” system, which protects its dairy and poultry markets from foreign competition. The US wants Canada to fully open its dairy market to American farmers.