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Most Canadian provinces stopped stocking US spirits last year<\/p>\nPresident Donald Trump has slapped a 50% tariff on certain Canadian goods in retaliation for the nation\u2019s \u201cunequal treatment\u201d of US alcohol.<\/p>\n
Most Canadian provinces stopped stocking US spirits last year<\/p>\n
A fact sheet on the White House website described the act as \u201clevelling the playing field for crucial American exports \u2013 cars, alcohol, and dairy\u201d.<\/p>\n
Citing Section 338 of the Tariff Act of 1930, the president said he intends to \u201coffset the burden or disadvantage from a foreign country\u2019s discrimination against or unequal imposition on the commerce of the United States\u201d.<\/p>\n
The proclamation continued: \u201cSpecifically, Canada unreasonably burdens and disadvantages US alcoholic beverages but not alcoholic beverages of other countries.\u201d<\/p>\n
All but two Canadian provinces responded to Trump\u2019s initial tariffs by removing US-made alcohol<\/a> from their government-controlled liquor stores.<\/p>\n Subsequently, exports of American spirits to Canada plunged by 70%<\/a> in a year, with a US trade representative launching an investigation into the \u2018discriminatory\u2019 boycott<\/a> on 9 July.<\/p>\n The White House\u2019s proclamation stated that Canadian imports of US alcoholic beverages plummeted by 81% between March 2025 and February 2026.<\/p>\n The new 50% tariff will be applied to most alcohol categories, including beer, wine, cider and spirits, from 19 August.<\/p>\n The tariffs apply to these products even though they qualify for preferential tariff treatment under the US-Mexico-Canada Agreement (USMCA). The agreement is currently under negotiation as part of a six-year review.<\/p>\n Trump\u2019s global tariffs were ruled to be unlawful in February 2026, prompting a chaotic refund process<\/a>. The ruling did not stop the president from immediately introducing a new 15% global tariff<\/a>.<\/p>\n The response<\/p>\n Canada\u2019s prime minister Mark Carney described the move on X as \u201cthe latest in a series of unilateral US trade actions that began with the US imposing a series of tariffs\u201d that violate the USMCA.<\/p>\n He continued: \u201cIn response to these measures and threats to Canadian sovereignty, provinces, territories, and Canadians from coast to coast to coast have stood together, taking the necessary actions to support our economy and defend our workers, farmers, businesses, and families.\u201d<\/p>\n He added that Canada has made a \u201cseries of detailed and comprehensive proposals\u201d to resolve the dispute, with discussions to \u201cintensify\u201d in the coming weeks.<\/p>\n He said: \u201cCanada believes in the benefits of free and fair trade, as evidenced by our new government signing more than 20 new economic and security partnerships.<\/p>\n \u201cThis trade dispute has raised costs for families, particularly in the US. Canada stands ready to engage intensively to address outstanding issues with the US to the mutual benefit of our citizens.<\/p>\n \u201cIn all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families.\u201d<\/p>\n Chris Swonger, president and CEO of the Distilled Spirits Council of the US (Discus), welcomed the US government\u2019s recognition of the \u201csignificant damage\u201d Canadian restrictions have caused US distillers, but added he had hoped the issue could be \u201cresolved without further escalation\u201d.<\/p>\n He continued: \u201cImposing a 50% tariff on imported spirits from Canada deepens trade tensions and raises the risk of further retaliation at a time when many US hospitality businesses continue to face financial hardships.<\/p>\n \u201cWe encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for US spirits and avoids further harm to the US hospitality sector.\u201d<\/p>\n Related news<\/p>\n \n \n
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