Old allies drift apart as US tariffs Canada's dairy, alcohol and motorcycles

The US and Canada trade dispute escalated on Tuesday (local time) with Washington announcing fresh restrictions on Canadian goods, after Ottawa introduced new tariffs on American products.The latest US measures will hit Canadian alcohol, dairy products, motorcycles and mopeds, while Canadian goods will also face restrictions in some major US government contracts. The White House said the new import restrictions will take effect on September 29.They came hours after Canada imposed tariffs on $20 billion worth of US imports, following the breakdown of trade talks between the two countries last month.