Washington, DC, September 9 — The United States has announced a fresh round of trade measures against Canada, banning several categories of imports and reshuffling existing tariffs after Ottawa imposed retaliatory tariffs on American goods.
Speaking to reporters on a background call, a senior US official said President Donald Trump had signed a series of proclamations under Section 338 of the Tariff Act of 1930, a rarely used law that allows Washington to ban imports from countries it says are treating US trade unfairly.
The measures cover three areas. Canadian dairy products, most alcoholic beverages and motorcycles will be barred from entering the US, with the bans expected to take effect in about three weeks.
Washington has also reshuffled an earlier round of tariffs dated July 20. Goods such as cement, road salt and certain medical supplies have been removed from the list, while new tariffs have been added on items including all-terrain vehicles, certain cheeses and motorboats. These changes will take effect within a week.
Separately, the administration has instructed federal procurement agencies to begin removing Canadian-origin goods from a government purchasing list worth an estimated $50 billion.
A previously announced threat to raise tariffs on Canadian cars and metals to 50% from Jan. 1 remains in place, officials confirmed.
According to US officials, Canada and China were the only two economies that responded to Washington’s tariff push with retaliatory measures rather than negotiating. Dozens of other economies, including Japan and the European Union, reached agreements instead of retaliating.
The official said Canadian provinces had set a precedent by removing US alcohol from store shelves and restricting American companies from provincial procurement markets early in the trade dispute. According to the official, these actions, rather than the tariffs themselves, triggered the authority to impose bans under Section 338.
For Indian exporters and trade watchers, the dispute illustrates how Washington’s current trade strategy distinguishes between countries that negotiate and those that retaliate. India has largely avoided the latter approach, instead pursuing a bilateral trade agreement with Washington while tariff negotiations have continued alongside disagreements over energy purchases from Russia.
US officials also downplayed concerns from some lawmakers that the dispute could hurt Republican prospects in the upcoming midterm elections, saying the targeted goods account for a negligible share of overall US consumption.
The official said the US had held constructive conversations with Canadian Minister Dominic LeBlanc in recent days and expected further talks, although no timeline was provided for resolving the dispute before the new bans take effect.
Asked about a separate threat to restrict Canadian aircraft maker Bombardier, the official said no decision had been finalized. (ANI)
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