No Deal With Canada, As 50% U.S. Tariffs On Wine And Spirits Take Effect
After a brief glimmer of hope last week when President Trump said a trade deal with Canada was close, talks with our northern neighbor collapsed, resulting in the imposition of 50% tariffs on wine and spirits. The lack of an agreement will hit large Canadian spirits brands in the U.S., such as Crown Royal and Fireball, with U.S. retail value of $2.4 billion and $1.45 billion respectively, according to Impact Databank.
“We recognize the Trump administration’s efforts to encourage the Canadian provinces to return American spirits and wine products to store shelves and understand that these retaliatory tariffs are intended to restore market access for U.S. producers,” said the Toasts Not Tariffs trade coalition in a statement.
“However, a 50% tariff on Canadian spirits, wine, and glass bottles will also have consequences for U.S. hospitality businesses. Bars, restaurants, and hotels across the country rely on a wide range of spirits and wine products to meet consumer demand, and higher costs will place additional pressure on these businesses already navigating a challenging economic environment.”
After the U.S. imposed higher levies on Canadian goods last year, Canadian provinces removed U.S. spirits from shelves, with only Alberta and Saskatchewan eventually lifting their bans. As a result, U.S. spirits exports to Canada fell 70% from March through December of last year.
“We appreciate the administration’s recognition that American distillers have been unfairly targeted by these Canadian provincial sales bans,” said DISCUS president and CEO Chris Swonger. “This discriminatory treatment of U.S. 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 U.S. spirits products to store shelves has led to this outcome. We encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for U.S. spirits throughout Canada and returns spirits trade to a zero-for-zero tariff framework.”—Daniel Marsteller
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Tagged : Canada, Crown Royal, Fireball, Tariffs
