From motorcycles to booze, U.S. ban on $1 billion worth of Canadian imports goes into effect

WASHINGTON — U.S.-Canada relations, already tense, are likely to deteriorate further after the United States went ahead early Tuesday with a decision to ban nearly $1 billion worth of Canadian imports, including alcoholic beverages, dairy products and motorcycles.

The ban amounts to barely a ripple in $880 billion worth of a two-way annual trade between the two northern neighbors. But it marks another ratcheting up of President Donald Trump’s second-term trade war with America’s longtime ally and trading partner.

The import ban “certainly won’t do anything to help the trade tensions between the United States and Canada,’’ said trade attorney Patrick Childress, a partner at Holland & Knight and a former U.S. trade official.

The latest sparring began over the summer when Trump reached back to a Great Depression law to impose 50% tariffs on about $20 billion worth of Canadian imports, charging that Canada discriminates against U.S. dairy, auto and alcoholic beverage producers. Canada promptly counterpunched with tariffs of 15%, 25% or 50%, matching U.S. imports dollar for dollar.

To punish Canada for retaliating against his tariffs, Trump decided to ban a list of Canadian products, effective 12:01 a.m. Eastern time Tuesday.

The economic impact is likely to be…

Original source: https://www.nbcnews.com/business