US BANS NEARLY $1BN OF CANADIAN IMPORTS

The United States has imposed a ban on nearly $1bn worth of imports from Canada, including alcoholic beverages, dairy products and motorcycles, according to reports. The measure took effect on Tuesday, the latest escalation in a trade dispute between the two countries. It follows a series of tariff actions and counter-actions since the start of President Donald Trump's second term. The ban has been described as a response to retaliatory tariffs imposed by Canada earlier this year.

The US and Canada have historically been close allies and trading partners, with two-way trade worth approximately $880bn a year, according to reports. Relations have deteriorated during Trump's second term, in which he has imposed tariffs on most US trading partners, including Canada, and referred to the country as the 51st state of the US. On 22 August, Washington introduced 50% tariffs on $20bn worth of Canadian goods, including dairy and motorcycles, after trade negotiations broke down. Canadian Prime Minister Mark Carney responded by saying Ottawa would match US tariffs "dollar for dollar" to protect Canadian workers, farmers, families and businesses. Canada then imposed tariffs of 15%, 25% and 50% on US exports of a similar value.

Professor Gary Shields, of Wayne State University's School of Business, said the ban's impact would be "minor" given the scale of overall US-Canada trade, but described the move as "rather astonishing" treatment of a longstanding ally. He called it "a tit-for-tat" that would not reduce taxes or benefit ordinary people, saying it was "kind of personal and a way of showing off toughness". No timeline has been set for any further tariffs or countermeasures from either government. The trade dispute remains unresolved, with tariffs continuing to apply on both sides.