US-Canada trade war: Donald Trump targets Canadian vehicles, alcohol and dairy with new curbs

The trade dispute between the United States and Canada has intensified after US President Donald Trump issued five presidential directives targeting Canadian imports including motor vehicles automotive components alcoholic beverages and dairy productsThe White House said the measures were introduced after bilateral negotiations broke down with the Trump administration accusing Canada of failing to fulfil commitments to remove what Washington considers discriminatory trade measuresThe five directives introduce import exclusions and changes to additional duties across three key commercial sectors including automobiles alcohol and dairyUS targets Canadian vehicles and auto componentsUnder the first directive certain Canadian motor vehicles and automotive components will be excluded from entering the US marketThe White House said Canadas motor vehicle tariff regime and quota allocations put US automobile manufacturers at a disadvantage compared with competitors from other countriesThe measure is aimed at addressing what the administration described as unequal treatment of American manufacturers in the Canadian marketA separate directive modifies the list of Canadian products subject to additional duties in connection with restrictions imposed on American alcoholic beveragesTariffs revised over Canadian restrictions on US alcoholThe second directive changes the scope of Canadian goods facing additional tariffs based on their value The administration said the measure was intended to offset restrictions imposed by Canadian provinces on American beer wine and spiritsAccording to the White House provincial rules in Canada restrict the distribution retail sale and purchase of US alcoholic beverages while allowing alcohol from other international markets to enter under different conditionsThe fourth directive goes further by imposing direct import exclusions on designated Canadian alcoholic beverages The administration said the measure was intended to respond to provincial restrictions affecting US liquor productsUS imposes dairy import exclusionsCanadian dairy products are also targeted under the new measuresThe third directive imposes an import exclusion on selected Canadian dairy products entering the US The White House specifically cited Canadas administration of tariffrate quotas on cheese as a trade barrier that it considers unreasonable and discriminatory against American dairy farmersThe measures represent a further escalation in trade tensions between the two countries which have maintained extensive commercial ties despite disagreements over tariffs and market accessAdditional duties linked to auto disputeThe fifth directive changes the scope of Canadian goods subject to additional duties linked to the dispute over motor vehiclesThe order revises the list of Canadian exports that could face secondary duties with the administration saying the changes are intended to offset disadvantages faced by US companies in the automotive sectorThe White House said additional tariffs under Section 338 of the Tariff Act of 1930 had originally been scheduled to take effect on August 19 2026 The measures were temporarily delayed for three days after Canada committed to addressing the disputes according to the administrationHowever the Trump administration said Canada later reneged on the agreement and ended what Washington described as goodfaith negotiations on August 21 The administration subsequently moved ahead with the revised duties and import exclusionsTrump orders removal of Canadian goods from US government purchasesEarlier on Wednesday Trump also said he had directed federal agencies to stop purchasing Canadian products through the US governments main procurement catalogueThe directive instructs the General Services Administration GSA and the Office of the United States Trade Representative USTR to begin removing Canadian goods from federal purchasing channelsIn a post on Truth Social Trump accused Canadian federal and provincial governments of preventing American small businesses from supplying publicsector buyers while Canadian companies have access to US government contractsDeclaring a policy of NO RECIPROCITY ndash NO ACCESS Trump said Canadian products would remain excluded from US government supply lists until Ottawa provides what his administration considers equal access to American businesses and farmers