Trump Bans Canadian Alcohol and Dairy Imports, Escalating Trade War Over $20 Billion in Retaliation

President Trump signed five proclamations under Section 338 of the Tariff Act on Sept. 8, 2026, banning imports of certain Canadian alcoholic beverages and dairy products and revising July's tariffs, after Canada that day imposed about $20 billion in retaliatory tariffs on U.S. steel, dairy and agricultural equipment and suspended trade talks. The import bans take effect Sept. 29; the tariff-scope revisions, dropping items like cement while adding products such as ATVs and more dairy goods, took effect Sept. 15.

The action extends a dispute that began with 50% tariffs on Canadian goods in mid-2026; the White House said Canada and China are the only major partners choosing retaliation over negotiation. Trump also directed the U.S. Trade Representative and GSA to strip Canadian-origin products from federal procurement schedules covering more than $50 billion in government purchasing.

Canada had not announced a further response as of publication.