Trump hits Canada with 50% tariffs over US alcohol ban

Thursday, 23 July, 2026
The Drinks Business, James Bayley
US President Donald Trump has imposed 50% tariffs on selected Canadian imports, accusing the country’s provinces of discriminating against American alcoholic beverages.

The White House said the move is intended to pressure Canada into lifting restrictions that have slashed US alcohol exports by more than 80%.

President Donald Trump has signed a proclamation imposing additional 50% tariffs on certain Canadian imports, escalating the trade dispute between the two countries over Canada’s restrictions on US alcoholic beverages.

The duties, which target around US$20 billion worth of Canadian goods, will take effect from 19 August.

The White House said the measures were introduced under Section 338 of the Tariff Act of 1930, which allows the President to impose duties on imports from countries found to be discriminating against US commerce.

White House targets provincial alcohol bans

In the proclamation, the administration argues that Canadian provinces unfairly singled out American alcohol after removing US products from government-controlled liquor stores and wholesale systems from March 2025.

Ontario’s Liquor Control Board (LCBO) and Quebec’s Société des alcools du Québec (SAQ) were cited among the organisations that stopped purchasing and distributing US wines, beers and spirits.

Only Alberta and Saskatchewan subsequently lifted their restrictions in June 2025.

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