Toronto: The United States is banning the import of selected dairy products, motorcycles, and most alcoholic beverages from Canada, the White House said on Tuesday, as a trade row between the long-standing allies continues to worsen.

The trade embargo is set to take effect on 29 September and follows $20 billion (£15.3 billion) in retaliatory tariffs introduced by Ottawa on Tuesday. Canadian measures targeted a broad range of American goods after cross-border trade negotiations collapsed last month.

Alongside the product bans, US President Donald Trump instructed the General Services Administration to exclude Canadian products from major, long-term US government contracts until Ottawa permits what he described as "full and fair reciprocity" for American goods.

Responding to the sanctions, Canadian Prime Minister Mark Carney said that Canada’s strategy was focused on achieving economic independence. He stated: "It’s about ensuring that no country can hold us hostage. And that we can live how we want to live."

Acknowledging that the trade disruptions would cause short-term disruption, Carney stressed that the measures would push the nation to accelerate investment, strengthen infrastructure, and diversify international trade routes. He said: "It was easy business, but it meant we relied too much on one economic partner," adding: "That time is over."

Expanding on the collapse of earlier talks, Carney said that the core issue was what Washington had sought during negotiations. He stated: "The most fundamental issue is that the cumulative U.S. demands revealed that they wanted us to become even more reliant on them, not less. In too many areas, they wanted dependency, not a true economic partnership."

As part of its push to broaden international ties, Ottawa is exploring options for closer integration with the European Union. Carney is scheduled to travel to Strasbourg next week, where he will attend European Commission President Ursula von der Leyen’s State of the European Union address before addressing the European Parliament.

The escalating trade dispute has sparked widespread public anger across Canada, leading to consumer boycotts of US products and a drop in cross-border travel. Commenting on regional sentiment, British Columbia Premier David Eby said: "While our kindness is one of our greatest strengths, you should never, ever mistake that kindness for weakness."

Although formal diplomatic negotiations remain suspended, officials from both nations confirmed that informal discussions are ongoing to assess whether a "path forward" can be established. (AP)