Trade Policy News

U.S. Enforces $1 Billion Ban on Canadian Alcohol, Dairy, and Motorcycles

The United States officially implemented a ban on nearly $1 billion worth of Canadian imports, including alcoholic beverages, dairy products, and motorcycles, at 12:01 a.m. Eastern Time on September 29, 2026. This move, grounded in the 1930 Smoot-Hawley Tariff Act, targets goods previously subject to 50% tariffs imposed by President Donald Trump. While the ban covers approximately 87% of the total value in alcohol, exemptions for bulk shipments allow major brands like Crown Royal to continue selling in the U.S. The action escalates a tit-for-tat trade dispute, with Canadian Prime Minister Mark Carney maintaining a stance of diversification rather than immediate negotiation.