Trump intensifies U.S.-Canada trade war with new bans on dairy, alcohol, motorcycles

Donald Trump has intensified the U.S. trade war with Canada by banning dairy products, most alcoholic beverages and motorcycles from its neighbor, the White House announced on Tuesday.

The ban will take effect in three weeks and comes after Canada imposed retaliatory tariffs on $20 billion in U.S. imports earlier Tuesday.

U.S. President Donald Trump also moved Tuesday to shut Canadian products out of large, long-term U.S. government contracts as Canada’s retaliatory tariffs took effect and Prime Minister Mark Carney vowed to speed efforts to reduce the country’s dependence on the United States.

Trump directed the U.S. General Services Administration to declare Canadian products ineligible for those contracts until Canada allows “full and fair reciprocity″ for American products.

Carney said Tuesday Canada’s strategy was about becoming more independent. “It’s about ensuring that no country can hold us hostage. And that we can live how we want to live.”

The rupture has upended one of the world’s closest relationships. On Aug. 22, the U.S. imposed 50 percent tariffs on about 5 percent of Canadian imports, charging that Canada had unfairly treated the American dairy, alcoholic beverage and auto industries.

The U.S. and Canada have long sparred over trade, particularly Canada’s protected dairy market and its subsidies for producers of softwood lumber. But they remained friends and staunch allies.

Under Trump, U.S.-Canada relations have deteriorated rapidly. In addition to imposing tariffs on Canadian products, Trump has repeatedly made inflammatory comments about making Canada the 51st U.S. state. Carney came to power in a come-from-behind political victory last year by promising to stand up to him.

Some Canadian provinces have banned the sale of U.S. alcoholic products — a move that prompted the retaliatory U.S. ban on Tuesday.

Canada is exploring ties with the European Union that could stop just short of membership, a Canadian official familiar with the discussions said.

Options could include expanding existing agreements, negotiating a new treaty or creating other forms of cooperation. The official said Canada is already consulting provinces, territories and labor groups about what a deeper relationship with the EU could look like, but no model has been chosen.

The official spoke on condition of anonymity because they were not authorized to discuss the talks publicly.

Carney is due in Strasbourg, France, next week, where he will attend European Commission President Ursula von der Leyen’s State of the European Union address Sept. 16 and address the European Parliament the following day.

The Associated Press contributed to this report.