US Imposes New Import Bans on Canadian Goods as Trade Dispute Escalates

By Mintesinot Nigussie  |  September 9, 2026

The US has imposed new restrictions on Canadian imports and expanded existing tariffs in response to what the Trump administration described as Canada’s continued discriminatory treatment of US commerce, escalating tensions between the two trading partners.

President Donald Trump invoked Section 338 of the Tariff Act of 1930 to ban certain Canadian products from entering the US market and adjust the scope of measures announced on July 20, according to Ambassador Jamieson Greer, the US trade representative.

The administration said the changes are intended to offset the burden imposed on US commerce by Canadian trade measures, while targeting strategic Canadian sectors and removing certain non-sensitive goods from the measures.

The President has also directed the Office of the US Trade Representative and the General Services Administration to remove 50 billion US dollars worth of Canadian-origin products from the GSA’s Multiple Award Schedules, a federal procurement system.

Greer said the measures followed unsuccessful negotiations between the US and Canada over a new trade agreement. He said Canadian negotiators had withdrawn from a near-final deal that would have provided Canada with favourable treatment compared with other US trading partners.

"Today’s action, combining targeted import bans as authorized by Section 338 and a calibration of the underlying Section 338 tariffs, is a natural consequence of Canada’s continued discriminatory treatment of crucial American exports," Greer said, citing alcoholic beverages, dairy products and motor vehicles.

Section 338 gives the US president authority to impose duties of up to 50 percent on imports from countries whose trade practices are deemed to disadvantage US commerce. The provision also allows the president to exclude certain foreign products from the US market where discriminatory practices against US commerce persist or intensify.

On July 20, Trump used the same authority to introduce three separate measures targeting Canadian treatment of US exports in the motor vehicle, alcoholic beverage and dairy sectors.

The latest action follows what the administration characterised as continued Canadian retaliation and discrimination against US commerce. The White House said the revised measures would concentrate on strategic Canadian sectors while excluding some goods considered non-sensitive.

Greer said the administration would continue using available trade measures to protect US workers and exporters and seek greater reciprocity in bilateral trade relations.

Source: FSX Business News