Canadian trade associations have urged government officials to return to the negotiating table to prevent new tariffs from hitting the food and drinks industry.
On Monday (20 July), the US lined up a new 50% tariff on a wide range of goods, including Canadian alcoholic products like whisk(e)y, wine and beer, as well as dairy goods like milk and cream.
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A statement from The White House said the move was “in response to Canada’s discriminatory treatment of American products”.
Local trade body Spirits Canada has called on federal and provincial governments to “engage immediately” with the US to withdraw or suspend the planned tariffs.
In a statement yesterday, Spirits Canada said it was “disappointed” by the US plan and urged local governments to “avoid further escalation through additional beverage alcohol countermeasures that could trigger further retaliation against Canadian producers”.
The US is looking to implement the new 50% tariff from 19 August. The move follows the White House refusing to renew the USMCA trade agreement it has with Canada and Mexico two weeks ago.
“The announced measure 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,” Spirits Canada said.
The trade body has also called for the return of “reciprocal market access for US beverage alcohol products through provincial distribution systems” in order “to protect Canadian exports, jobs and investment”.
It said the Canadian spirits industry was “uniquely vulnerable to the risks of these tariffs” with almost half of the country’s spirits production being bound for the US, “making continued access to that market essential for Canadian distillers, farmers, supply chains and the thousands of Canadians whose livelihoods depend on the industry.”
According to the association, the 50% tariff would also apply to spirits-based ready-to-drink products.
“The North American spirits sector is deeply interconnected,” Spirits Canada president and CEO Cal Bricker added. “Tariffs do not simply affect exporters – they impact farmers, manufacturers, hospitality businesses, retailers, governments and ultimately consumers in both countries. We are concerned that this action could trigger a cycle of retaliatory measures that harms an industry that has prospered under decades of fair and reciprocal trade.”
National industry association Food, Health & Consumer Products of Canada also called for talks.
“The 30-day window before these measures take effect must be used to reach a negotiated solution and restore the predictability businesses require,” the FHCP said.
“If Canada responds with countermeasures, food, health, and consumer product inputs must remain off the tariff list. Adding costs to essential ingredients, materials, and finished goods would further weaken Canadian competitiveness without creating meaningful leverage.”
Trade tensions have escalated between Canada and the US over the past 18 months.
Canadian provinces including Ontario and Quebec started pulling US alcohol from their shelves in March 2025 as a response to US tariffs on Canadian goods.
Alberta and Saskatchewan provinces ended their bans three months later. Some provinces have started selling existing stockpiles of US alcohol but orders and sales remain restricted in other parts of the country.
Earlier this month, a Republican congresswoman filed a bill looking to prompt an investigation into the US alcohol ban still in place in multiple Canadian provinces.
