The US has delayed the introduction of a 50% tariff on a range of Canadian goods including alcohol and dairy after President Trump said the two countries had reached a deal.
In a post on Truth Social, Trump said he had “paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three-day period” because “Canada and the USA, subject to the finalisation of documents, have a deal!”
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The duties had originally been due to take effect today after the White House announced last month the measures would be imposed in response to what the administration described as Canada’s “discriminatory treatment” of US products.
Products set to be affected include spirits, wine, beer and cider, as well as dairy goods such as milk, cream, dried whey and whey protein concentrates.
Trump also said the Keystone XL Pipeline, “long ago killed by Sleepy Joe Biden, may be awoken from the grave”, although no further details were provided.
Reacting to the delay, Chris Swonger, the president and CEO of US spirits industry trade body DISCUS, said: “We appreciate President Trump’s continued commitment to restoring access for American spirits products across Canada following the discriminatory sales bans that have unfairly targeted US distillers for more than a year and a half.”
Swonger said the provincial restrictions had caused exports of American spirits to Canada to fall by more than 70%, leaving distillers “caught in the middle of a broader trade dispute”.
“As discussions continue over the next few days, we encourage leaders on both sides of the border to reach a negotiated solution that gets American spirits back on retail shelves in all Canadian provinces and returns the spirits sector to a zero-for-zero tariff framework,” he added.
The planned tariffs were announced on 20 July under Section 338 of the Tariff Act of 1930, after Trump said “Canada unreasonably burdens and disadvantages US alcoholic beverages but not alcoholic beverages of other countries”.
