Why is the US banning Canadian whisky?

The trade war between the US and Canada, which were close partners for decades, has become even fiercer. The two countries trade goods worth hundreds of billions of dollars every year. After Canada introduced its counter-tariffs on 8 September, US President Donald Trump signed new orders. Under them, from 29 September imports of most Canadian alcoholic drinks will be banned, including whisky, wine and beer. The ban will apply to some dairy products, such as whey, and to larger motorcycles as well.

The latest clash began over milk, alcohol and cars. Washington claims that Canada discriminates against American producers in these three sectors. As early as March 2025 many Canadian provinces removed American alcoholic drinks from their shops. Since then exports of American alcohol to Canada have fallen dramatically. The talks between the two governments collapsed on 21 August, and only a day later the American tariffs of 50 per cent came into force. They hit Canadian goods worth about 20 billion dollars. Prime Minister Mark Carney then promised that Canada would respond in kind.

Canada's counter-tariffs, which range from 15 to 50 per cent, apply to American goods of a similar value. Among them are steel, clothing, electronics and farm machinery. Trump responded not only with the ban but also with new tariffs on even more products, such as golf carts. He also ordered Canadian products to be removed from government purchasing.

For Canada this is a heavy blow, because more than two thirds of its exports go to the US. Particularly affected are the producers of whisky and of dairy products. Nevertheless, Carney says that his country has everything it needs to adapt and to prosper. He admits that the change will come at a price, but believes that standing still would cost even more. In his view, Canada had relied too heavily on one partner for years, and now that time is over.

What happens now? Official talks have stalled, although the two governments remain in contact. Without a deal, the ban will take effect in just a few days.