U.S. bans on Canadian booze hit producers on one of the trade war's thorniest fronts
As of Tuesday, some Canadian products, including dairy, motorcycles and alcohol can no longer cross the border to the U.S. at all thanks to an American import ban. It's the latest escalation in the Canada-U.S. trade war, where booze has taken centre stage.
U.S.-Canada relations have become increasingly tense, resulting in the United States imposing a ban on nearly $1 billion worth of Canadian imports, including alcoholic beverages, dairy products, and motorcycles, early Tuesday. This comes after President Donald Trump imposed 50% tariffs on about $20 billion worth of Canadian imports, accusing Canada of discriminating against U.S. dairy, auto, and alcoholic beverage producers.
In response, Canada retaliated with tariffs on U.S. imports. The ban, which is expected to have minimal economic impact, covers 87% alcoholic beverages due to Canadian provinces banning U.S. liquor from store shelves. The Canadian government aims to reduce its reliance on the United States and has sought to double non-U.S. trade over the next decade.
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