Canadian trade organisations have expressed their disappointment at the US’s decision to impose an additional 50% tariff on a raft of Canadian goods that includes alcoholic beverages.
The latest tariffs, which were announced on Monday (20 July), are due to take effect on 19 August. The Trump administration cited “unequal and unreasonable imposition or discrimination” against US produce in a separate proclamation explaining the added levy on imported alcohol from Canada.
Spirits Canada said the move, which will see tariffs on spirits go from zero to 50%, “places one of Canada’s most successful export sectors at significant risk and underscores the urgent need for a coordinated, negotiated solution between both countries”. The Toronto-based trade association said Canada’s spirits sector is “uniquely vulnerable to the risks of these tariffs” as around half of production is exported to the US.
“Both the Canadian and American spirits industries have felt significant impacts of this broader trade dispute,” said Spirits Canada’s CEO, Cal Bricker. “While we are disappointed by this announcement, we remain committed to working collaboratively with governments on both sides of the border to reach a practical solution before these tariffs take effect.
“The longstanding trade relationship between Canada and the US has benefited producers, consumers, workers and governments alike, and we believe that relationship is worth protecting.”
Elsewhere, Canadian trade union Uniflor urged officials not to reverse the province-specific bans on US alcohol that were implemented last year, saying: “The provincial and federal governments must stand firm”.
Sales of spirits from the US in Canada nosedived last year as individual provinces began pulling the country’s products from liquor store shelves. The removal came about in response to President Trump’s implementation of a 25% tariff on selected imports from Canada, although this did not include alcohol.
“Concessions won’t work. We have seen that,” said Uniflor national president Lana Payne. “Our government must double down on its ‘Buy Canadian’ policy and advance a made-in-Canada strategy while continuing to seek a durable resolution to this trade dispute.
“Canadians must continue to use our purchasing power to send a message south of the border, as it clearly has an impact.”
