US and Canada Impose New Trade Barriers Amid Ongoing Dispute

Recent trade measures between the United States and Canada have resulted in new tariffs and import bans affecting a range of goods. These actions represent the latest steps in a series of trade policy moves between the two countries.

On September 8, 2026, Canada implemented counter-tariffs on US-origin products, applying surtaxes of 15%, 25%, or 50% to selected goods. The Canadian government stated that these measures target sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, electronics, and consumer goods.

According to the Government of Canada, the surtaxes apply even to products that would otherwise qualify for preferential treatment under the Canada-United States-Mexico Agreement (CUSMA). The counter-tariffs were introduced in response to earlier US actions affecting Canadian exports.

The United States announced that, effective September 29, 2026, it will prohibit the import of certain Canadian alcoholic beverages, motorcycles, and dairy products. The White House stated that the ban was enacted under Section 604 of the Trade Act of 1974.

What the numbers show

• Canada’s counter-tariffs cover approximately US$20 billion of US goods.
• The US imposed 50% tariffs on about US$27.6 billion of Canadian goods on August 22, 2026.
• US import bans on Canadian products take effect September 29, 2026.

The US government described its import ban as a response to Canada’s counter-tariffs and earlier trade actions. The US measures go beyond tariffs by fully restricting access to the US market for the affected Canadian goods, rather than just increasing their cost.

Media reports have described the US import ban as an escalation in the ongoing trade dispute between the two countries. The US measures follow Canada’s implementation of surtaxes on a wide range of US exports.

The Canadian counter-tariffs and the US import bans are the latest developments in a trade conflict that has involved multiple rounds of tariffs and restrictions. The dispute has impacted several industries on both sides of the border, particularly those involved in the production and export of steel, dairy, and alcoholic beverages.

* This article is based on publicly available information at the time of writing.