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Economy & Trade

US import ban on Canadian alcohol takes effect

A US import ban on several Canadian products, including many alcoholic beverages, took effect Tuesday as trade tensions between the neighboring countries deepened.

The ban entered into force at 12:01 am US Eastern time after being announced earlier this month. It covers beer, sparkling wine, brandy, sake and many types of liquor, as well as dairy-based whey protein and high-powered motorcycles.

President Donald Trump announced the measures on September 8 after Canada imposed retaliatory tariffs on about $20 billion in US exports. Trump has justified the alcohol restrictions by citing what he called discriminatory boycotts and tariffs on similar US products.

On Monday, Trump accused Canada of treating the United States unfairly and called the country "entitled."

Canada relies heavily on US trade, with nearly 60 percent of its imports coming from the United States and about 70 percent of its exports going to the US market. The Canadian government has announced a $5.4 billion aid package for businesses and workers.

Spirits Canada, a trade association for the country's alcohol sector, said the effect of the import ban could be "significant." It said about 50 percent of Canadian spirits production is tied to US demand, leaving producers with limited ability to replace lost sales in the near term.

Uncertainty notes

The near-term economic impact of the ban remains uncertain.

Source

AFP news report published on .

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