Canadian spirits are the latest products to be added to the US’s tariffs list, after negotiations between the neighbouring countries ended unsuccessfully on Friday (21 August).
Exports of spirits from Canada into the US will be impacted by a 50% tariff, countering a boycott of American spirits that has been running in some Canadian provinces since March last year. While the move had been flagged by US authorities a month ago, the progression to implementation was confirmed following the collapse of the talks last week.
Responding to the development, US trade association the Distilled Spirits Council of the US laid the blame for the US tariff at the feet of the Canadian boycott. “We appreciate the administration’s recognition that American distillers have been unfairly targeted by these Canadian provincial sales bans,” said CEO Chris Swonger. “This discriminatory treatment of US spirits products has persisted for more than a year and a half, causing significant economic harm to our industry.
“It is unfortunate that the Canadian provinces’ continued refusal to return US spirits products to store shelves has led to this outcome.”
Speaking to Bloomberg over the weekend, the CEO of the American Whiskey Association, Michael Bilello, encouraged both sides to “return to the negotiating table”.
“For American whiskey producers, this remains unfinished business,” he said. “For a year and a half now, American whiskey has been shut out from most of the provinces in Canada. We were really looking forward to reconnecting with our Canadian consumer, but obviously that’s not happening.
“We received good indications yesterday there was progress being made, so to learn about this late last night … was really unfortunate.”
Alberta and Saskatchewan are the only provinces that have since lifted their bans on American spirits.
