The US will not impose a new 50% tariff on Canadian spirits for at least another three days, with president Donald Trump claiming a deal has been struck.
The tariffs were due to be applied from 19 August but were paused at the 11th hour
President Trump threatened the tariff in July and said it would “level the playing field for crucial American exports – cars, alcohol, and dairy”.
The move was in response to the majority of Canadian provinces choosing to remove US-made alcohol from their stores following Trump’s initial tariffs.
Exports of American spirits to Canada subsequently plunged by 70% in a year.
The retaliatory tariff was due to come into force today (19 August) but has been postponed as talks between the two nations proceed.
Posting on Truth Social, Trump said: “I have paused the 50% tariffs against Canada that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the USA, subject to the finalisation of documents, have a deal.”
Canada’s president Mark Carney took a more cautious approach, saying on Twitter that ”substantial progress has been made, although there is important work still to be done”.
The pause has been welcomed by those in the spirits industry, including the Distilled Spirits Council of the United States (Discus).
A spokesperson for Discus said: “We appreciate president Trump’s continued commitment to restoring access for American spirits products across Canada following the discriminatory sales bans that have unfairly targeted US distillers for more than a year and a half.
“These provincial bans have caused exports of American spirits to drop by more than 70%, leaving American distillers caught in the middle of a broader trade dispute.
“As discussions continue over the next few days, we encourage leaders on both sides of the border to reach a negotiated solution that gets American spirits back on retail shelves in all Canadian provinces and returns the spirits sector to a zero-for-zero tariff framework.”
Discus is inviting its members to a Congressional Fly-In in Washington, DC, on 24 September.
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