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U.S. moves to ban imports of some Canadian products, exempt others from tariffs
President Donald Trump signed executive orders on Tuesday banning Canadian liquor and dairy imports, while exempting items including road salt, toilet paper, and cement that take effect later this month.
Trade Representative Jamieson Greer blamed Canada for the escalation, calling it a "natural consequence" of discriminating against American exports and stating the administration would continue defending American workers and exporters.
Economist Stephen Brown noted the tariff list changes involve roughly $1.7 billion in goods, affecting 0.25 per cent of Canadian exports. The new import bans raise risks that 50 per cent tariffs could persist longer than anticipated.
Maine Sen. Susan Collins welcomed the exemptions, noting Frenchville faces $10,000 in extra road salt costs. She urged the administration to "de-escalate this conflict" after Canada carved out American seafood from its retaliatory tariff list.
Persistent tariffs until year-end could cause the Canadian economy to stagnate or contract, though roughly $7.5 billion in federal stimulus spending may offset some impact. Brown warned the escalation risks dealing the Canadian economy a larger blow if tariffs remain.