The ongoing trade dispute between the US and Canada risks making the two markets’ on-premise channels “collateral damage”, according to an alcohol industry organisation in the US.
The row has spilled yet further into the alcohol industry this week with a US ban on certain spirits and wine imports from Canada taking effect today (29 September). The development is effectively a counterpoint to Canada’s provinces launching boycotts of US-made alcohol in March last year.
Since then, only two provinces – Alberta and Saskatchewan – have lifted their bans.
The Toasts Not Tariffs Coalition, which consists of trade associations and state guilds throughout the US’s three-tier system, responded to the latest move by bemoaning its timing. “This new ban on Canadian alcohol products will ripple throughout the US hospitality sector at a time when restaurants, bars and retailers are preparing for the busy holiday season,” the organisation said.
“We appreciate the Trump administration’s commitment to encouraging Canada to reopen its market to American spirits and wine products. However, … America’s restaurants, bars, retailers and consumers are being pulled further into a trade dispute that has already taken a significant toll on US wine and spirits producers.”
The coalition concluded: “The best outcome remains a negotiated solution that … allows US and Canadian hospitality businesses to focus on growth rather than becoming collateral damage in a trade dispute beyond their control.”
According to the organisation, the US accounted for 93% of Canada’s total spirits exports last year.
In late July, the US announced a 50% additional tariff on specified Canadian alcoholic beverages which took place on 22 August. The Trump administration cited “unequal and unreasonable imposition or discrimination” against US produce in a proclamation explaining the added levy on imported alcohol from Canada.
