Trump just hit Canada with fresh trade curbs—here's what will cost more

US President Donald Trump has announced fresh trade restrictions on Canadian goods, escalating the tariff dispute between the two North American neighbours.

The new measures include higher duties on products such as mattresses, motorboats and golf carts, along with restrictions on selected Canadian alcohol and dairy imports. Washington is also moving to limit Canadian products' access to major US government procurement contracts.

New tariffs and import restrictions

Under a new executive order, Canadian mattresses, motorboats and golf carts will face a 50 per cent tariff from September 15.

Separate orders will prohibit imports of certain Canadian alcoholic beverages and some dairy products, including whey, from September 29.

Trump said the restrictions on alcohol were linked to what he described as “discriminatory" provincial boycotts of American drinks. Several Canadian provinces have removed US wines and spirits from their stores as part of a consumer backlash against Trump's tariff policies.

The latest action follows Canada's decision on Tuesday to impose additional tariffs on US products in response to duties announced by Washington last month.

Canadian goods face procurement curbs

Trump has also targeted Canada's access to the US government's procurement system.

In a post on Truth Social, he directed the General Services Administration (GSA), in coordination with the US Trade Representative, to remove Canadian-origin products from its Multiple Award Schedules unless Canada provides “full and fair reciprocity" to US businesses and farmers.

Trump said the programme represents more than $50 billion in government purchases annually. He accused Canada of limiting US companies' access to its government procurement market while Canadian businesses have wider access to the US market.

“From now on, NO RECIPROCITY – NO ACCESS! I am hereby directing the GSA, working with the USTR, to take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies," he wrote.

Trade dispute widens

The latest restrictions add to a growing series of measures imposed by both countries as the trade dispute deepens.

A senior US administration official said the latest steps were intended to prevent further retaliation and support American producers.

“President Trump is doing this to make sure, again, that we keep a level playing field, deter retaliation, and of course protect American production," the official told reporters.

US trade lawyer Ryan Majerus said the measures could expand the range of Canadian products affected by US trade restrictions.

The developments come as Canadian Prime Minister Mark Carney seeks to reduce Canada's economic dependence on the US and develop stronger trade ties with other countries.