In a series of executive orders issued on Tuesday, US President Donald Trump accused Canada of “discriminating” against the United States and announced that the new import restrictions would take effect from 29 September.
Officials from both countries have expressed interest in reaching a new trade agreement, although no fresh negotiations have been arranged since discussions broke down in late August.
Canada’s Trade Minister, Dominic LeBlanc, described the latest US measures as “unjustified”, saying he would continue efforts to safeguard Canadian workers, families and businesses.
“Our core focus is on what we can control: building strength at home, diversifying our partnerships abroad, and building Canada strong for all Canadians,” LeBlanc said.
He added that he had spoken with his American counterpart and would work “in good faith” towards easing the ongoing trade tensions.
Earlier on Tuesday, Canadian Prime Minister Mark Carney said in a video address that reducing Canada’s dependence on the US as its biggest trading partner “will come at a cost”.
The latest measures announced by Washington represent another escalation in the months-long trade dispute between the two countries. The US and Canada have traditionally maintained close diplomatic and economic ties, with each country serving as an important trading partner for the other.
More than two-thirds of Canada’s exports generally go to the United States. UN data compiled by Trading Economics showed that in 2025, Canadian exports of alcoholic spirits to the US were valued at US$687m (£507m), while dairy products accounted for $269m and motorcycles $90m.
However, Stephen Brown, Chief North America Economist at Capital Economics, said the affected products represented only about 0.25% of Canada’s exports to the United States.
He said: “Nonetheless, Trump’s willingness to impose an import ban is further evidence, if it were needed, that these latest measures are about inflicting economic pain rather than raising revenue.”
Canada remains the second-largest trading partner of the United States after Mexico, although its export market is less diversified compared with that of the US.
In recent months, businesses on both sides of the border have raised concerns about the economic consequences of the trade dispute. Many businesses anticipate higher prices for goods alongside a decline in consumer demand.
Last month, the White House introduced 50% tariffs on approximately $20bn (£14.8bn) worth of Canadian products after several rounds of negotiations failed to produce an agreement.
The tariffs affected industries including Canadian furniture and wine producers, as well as businesses involved in sporting and fishing equipment.
