Trump bans Canadian booze in trade war escalation

The US has revealed plans to outlaw imports of Canadian alcoholic drinks as part of an escalation of their trade war.

It was announced on the White House website that, from 29 September, most Canadian alcoholic beverages, motorcycles and some dairy products would be unable to cross the border.

In addition to the import bans, various cheese, wood, furniture and other products were added to a list of $20bn (£17.1bn) worth of goods subject to 50% tariffs already in force.

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The escalation was revealed just hours after Canada's own retaliatory tariffs on $20bn of US products took effect.

The tit-for-tat measures all followed the collapse of talks last month that saw Donald Trump respond bitterly by signing an executive order renaming ‌Lake Ontario as Lake America.

The White House announcement comes on top of further threats, by the president himself, to escalate the trade war.

He has warned that Canadian aircraft company Bombardier could no longer be permitted to sell its planes in the US unless it moves its manufacturing to the country.

A further pre-existing threat would see 25% tariffs on Canadian-produced vehicles raised to 50% from January.

The tariffs to date currently cover a minority of the total value of goods typically shifted between the two countries, but the added costs threaten to hurt economic growth and stoke inflation in both countries.

There is currently no sign that further escalation can be prevented.

Canada's prime minister, the former Bank of England governor Mark Carney, has signalled a further shift away from his country's biggest trading partner amid frustration over his country's treatment.

"We have everything we need to pivot and prosper," he said in a video posted on YouTube.

"That pivot will come at a cost. There's always a cost to action. But ​it doesn't come close to the cost of standing still."

Canada's trading relationship with the US has been in Mr Trump's sights since the start of his second term, casting doubt on the viability of the US-Mexico-Canada Agreement that aims to smooth trade and the path for parts covering just-in-time, cross-border supply chains.

The Canadian government was yet to respond to the latest US threat.

The planned US product bans appear to cover most alcohol products, including beer and whisky.

The dairy ban covers whey protein, invert molasses, cane molasses and non-alcoholic beer.

If enacted, they could force Canada to respond in kind.

Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance, said: "What we are worried about is an escalatory spiral.

"But at the same time, we totally understand that the prime minister needs to find areas of leverage."

(c) Sky News 2026: Trump bans Canadian booze in trade war escalation