Trump bans Canadian alcohol, motorcycles, farm products effective September 29

U.S. President Donald Trump signed five proclamations Tuesday banning Canadian alcohol, motorcycles, whey products, and molasses from entering the U.S. effective September 29, while imposing 50% tariffs on certain dairy products, paper, wood products, aluminum, furniture, and mattresses starting next week.

The move comes as Canada's retaliatory tariffs on billions of dollars worth of U.S. imports took effect earlier Tuesday, following trade talks that collapsed last month after 50% U.S. tariffs on Canadian products hit in late August.

About half of the $2 billion in spirits produced in Canada annually is sold to the U.S., and the alcohol ban puts significant pressure on an already-challenged industry. Cal Bricker, president and CEO of Spirits Canada, said: "We're very hopeful that the two sides can return to the table and get some resolution because this isn't helping anybody."

Ontario businesses are expressing mixed reactions. Daniel Tisch, president and CEO of the Ontario Chamber of Commerce, called for "mutual de-escalation" to the tariff war but sees the situation as a "moment of opportunity" for building local industry. "If we play our cards right in Canada and continue to make this a more effective place to do business, we're going to continue to be seen as a beacon of stability in the world," Tisch said.

Aaron Dobbin, president of Wine Growers Ontario, said the U.S. ban on Canadian alcohol is "what we've come to expect" after August tariffs made their products unaffordable in the U.S. The ban could further hurt relationships with distributors south of the border, though Dobbin noted the American market isn't a big one for Wine Growers Ontario. Since the Ontario government told the LCBO to stop selling U.S. products in March 2025, sales of wines made from Ontario-grown grapes soared. "Canadians have stood up, and have been supporting Canada and Ontario producers," Dobbin said.