The United States put restrictions on selected Canadian alcoholic beverages, dairy products and motorcycles into effect at 12:01 a.m. Eastern time Tuesday, escalating a trade dispute with Canada. The measures cover $967 million of Canadian imports based on 2025 figures, with alcohol accounting for 87% of the affected value, a small share of roughly $880 billion in annual two-way trade. The ban followed U.S. tariffs of 50% on about $20 billion of Canadian goods under Section 338 of the Tariff Act of 1930, imposed over alleged discrimination against U.S. dairy, automobile and alcohol producers. Canada responded with tariffs of 15%, 25% or 50%, which it described as dollar-for-dollar retaliation. Trade attorney Patrick Childress said the existing tariffs had already made many affected imports commercially unviable, while American Action Forum director Jacob Jensen warned of further Canadian retaliation and pressure for a negotiated resolution. The S&P/TSX Composite Index closed at 35,460 on Tuesday as subdued August GDP data and the import restrictions weighed on sentiment. Real GDP rose 0.2% in August after remaining essentially unchanged in July; oil prices and energy shares fell, while gold supported miners and technology stocks advanced. The dispute also threatens the U.S.-Mexico-Canada Agreement and has prompted Prime Minister Mark Carney to pursue trade diversification, while President Donald Trump said he expected Ottawa to seek a fair deal.