US Tightens Trade Curbs on Canada, Bans Alcohol, Whey and Motorcycles

The US-Canada trade war escalated further this week after the United States announced import bans on several Canadian products, including alcoholic beverages, whey, molasses and motorcycles, adding fresh pressure on cross-border trade.

The new restrictions, scheduled to take effect on September 29, come after the US imposed 50 per cent tariffs on about USD 20 billion worth of Canadian goods. That represents roughly 5 per cent of the USD 381.92 billion in products Canada exported to the US last year.

While the tariffs have already increased costs for Canadian exporters, experts said the new import bans could create additional difficulties for businesses in targeted sectors.

The restrictions cover beer made from malt, certain wines and spirits, including whisky, bourbon, gin and vodka. Canadian whisky is particularly exposed, with 17.5 million 9-litre cases sold in the US in 2023, generating about USD 2.3 billion in revenue for distillers, according to the Distilled Spirits Council of the US.

US trade data showed that products covered by the new bans were worth about USD 846.1 million in imports from Canada in 2025.

The measures also target eight types of whey, including protein concentrates and modified whey, as well as certain molasses products. Nearly half of the USD 73.6 million worth of general whey and modified whey imported by the US in 2025 originated in Canada.

Most Canadian motorcycles and mopeds with larger engines are also covered. These imports were worth around USD 80.6 million last year, accounting for less than 9 per cent of total US motorcycle imports.

However, the latest changes also remove several products, including cement, toilet paper, bedsheets and fishing rods, from the tariff list.

Experts warned that the measures could trigger further Canadian retaliation, disrupt supply chains, reduce consumer choice and raise costs, highlighting the broader economic risks of the escalating trade dispute.