Trump's Trade Fight With Canada May Sour Cocktail Industry
President Donald Trump's trade fight with Canada has reached a new level of intensity. A proposed 50% tariff on Canadian spirits could affect not just distillers but also hospitality businesses in the US.
The Distilled Spirits Council, led by President and CEO Chris Swonger, is concerned that the tariffs would harm both sides. 'First and foremost, great thanks to President Trump because he has recognized that our industry has lost 73% of our American distilled spirits exports to Canada as a result of the provincial ban of purchasing American distilled spirits,' Swonger said.
The US historically exports around $220 million worth of distilled spirits to Canada annually. However, some Canadian provinces have pulled American spirits from store shelves in retaliation for earlier US tariffs.
Swonger cautioned that a 50% levy would be 'absolutely devastating to the Canadian distilled spirits industry' and would have 'a real impact on the American hospitality economy.'