OTTAWA — A new U.S. ban targeting nearly US$1 billion worth of Canadian imports has taken effect, adding another major development to the ongoing Canada-U.S. trade dispute.

The measures, which came into force September 29, 2026, target a range of Canadian products, including alcoholic beverages, dairy products and motorcycles. The affected trade is relatively small compared with the roughly US$880 billion in annual two-way trade between Canada and the United States, but the move adds further pressure to bilateral relations.

The latest action follows U.S. tariffs imposed earlier this year on about US$20 billion of Canadian imports. Canada responded with its own tariffs on selected U.S. products.

Canadian businesses in sectors affected by the restrictions now face another layer of uncertainty as companies assess supply chains, export markets and the potential impact on cross-border commerce.

The development comes as Prime Minister Mark Carney's government continues efforts to diversify Canada's international trade relationships amid continuing friction with its largest trading partner.

The new U.S. restrictions mark another significant moment for Canadian exporters and the wider Canada-U.S. economic relationship.