(TNND) — The United States’ ban on nearly $1 billion worth of Canadian imports took effect Tuesday, escalating President Donald Trump’s trade fight with one of America’s closest allies and largest trading partners.
The restrictions, which began at 12:01 a.m. ET, block imports of specified Canadian alcoholic beverages, dairy products, molasses and large-engine motorcycles.
The U.S. targeted Canadian alcohol after some Canadian provinces pulled American liquor from store shelves in response to Trump’s earlier tariffs.
The latest escalation follows Trump’s decision this summer to impose 50% tariffs on roughly $20 billion in Canadian imports, accusing Canada of discriminating against U.S. dairy, auto and alcohol producers. Canada responded with tariffs of 15%, 25% or 50%, matching the U.S. measures dollar for dollar.
The targeted dairy products include whey, a milk byproduct, amid a longstanding dispute over Canada’s protections for its dairy industry. Canada imposes high tariffs on dairy imports that exceed certain quotas.
Trump expressed confidence Monday that Canada would ultimately return to negotiations, saying he expected a deal to be reached. Canada, meanwhile, said it remains focused on supporting businesses and workers affected by what it called unjustified U.S. trade measures.
The economic effect is expected to be modest, in part because the products had already faced 50% 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,” trade attorney Patrick Childress told The Associated Press.
Still, the dispute threatens to further strain the U.S.-Mexico-Canada Agreement, the North American trade pact that allows most goods to move across the three countries’ borders duty-free. Childress said the standoff is likely to continue for months, not weeks, because the tariffs and bans may not create enough economic pressure to push either side back to the negotiating table.