The United States announced on July 20 that it will impose an additional ad valorem duty of 50 percent on certain products from Canada, effective August 19, in response to what it describes as discriminatory actions by Canadian provinces and territories against U.S. alcoholic beverages.
According to the proclamation, Canadian provinces and territories began halting the purchase, distribution, or retailing of U.S. alcoholic beverages in March 2025. For example, the Liquor Control Board of Ontario ceased purchasing all U.S. products and removed them from stores and online catalogs, while Quebec instructed its liquor authority to remove all U.S. products from shelves and stop supplying them to retailers and hospitality venues. Only Alberta and Saskatchewan lifted their bans in June 2025.
As a result of these measures, U.S. exports of alcoholic beverages to Canada fell by approximately 81 percent between March 2025 and February 2026 compared with the same period a year earlier—dropping from about $718 million to $137 million. During this time frame, imports into Canada from other countries such as Chile, Japan, Argentina, Ireland, New Zealand, Australia, and members of the European Union increased significantly.
The proclamation states: “I find as a fact that through the regulation, restriction or prohibition of U.S. alcoholic beverages Canada has imposed an unreasonable regulation or limitation on articles wholly or in part the growth or products of the United States … by banning the purchase, distribution or retailing of U.S. alcoholic beverages while not banning or similarly restricting such products from other countries.”
President Donald J. Trump said imposing additional duties is necessary, “to address the burden or disadvantage from this discrimination,” and that these actions are “in the public interest.” The new tariffs are intended both to offset economic harm suffered by American producers due to lost export opportunities and potentially encourage Canada to remove restrictions against U.S.-made alcohol.