A US ban on several Canadian imports, including alcohol, dairy and motorcycles, took effect Tuesday, the latest escalation in a trade war between the two neighbors.
The Trump administration imposed the measure in response to Canada's decision earlier this month to slap tariffs on a range of US goods after trade talks collapsed.
The ban covers nearly C$1 billion ($710 million) worth of Canadian liquor exported to the US, along with whey products used in protein powder. Motorcycle exports are also affected, though Canada's shipments to the US are small.
Canada is not expected to hit back further. Prime Minister Mark Carney said earlier this month that the import bans would have a "modest" impact on Canada's economy.
About 90% of all Canadian alcohol exports went to the US in 2025, with most of that supply coming from Ontario. The province's liquor control board pulled American alcohol from shelves last year in its own response to earlier US tariffs.
Trade talks between Washington and Ottawa remain frozen. US Trade Representative Jamieson Greer told CNBC last week that President Donald Trump is "comfortable" with his current relationship with Canada.
"They call us now and then and we have good conversations about potential deals. But there's no urgency on our side," Greer said.
The standoff has dragged on for months, disrupting supply chains across North America and raising costs for businesses on both sides of the border. Canada is one of the largest US trading partners, with hundreds of billions of dollars in goods crossing the border each year.
The White House has not signaled when negotiations might restart. Greer's comments suggest Washington sees little pressure to settle, even as the measures stack up.
For Canadian producers, the ban closes off their biggest market for spirits and dairy byproducts. Ontario distillers and dairy processors are among those most exposed, given their reliance on US buyers.
Carney's government has not announced new countermeasures. His earlier comments suggest Ottawa will absorb the hit rather than widen the dispute.
