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Watch Out, Whiskey Is One of Latest Casualties in USA-Canada Trade War

As promised by Prime Minister Justin Trudeau, the Canadian government fired back today, announcing retaliatory tariffs that impact multiple industries — including whiskey.

Items as varied as ketchup, whiskey and lawn mowers will be taxed upon entry from the U.S. The list adds up to more than $12 billion of U.S. goods, and represents a similar dollar value of goods to the tariffs placed by President Trump on imports from our northern neighbor.

Tariffs on steel and aluminum products were announced earlier this year by the president. U.S. industries have already felt the impact, even in unexpected areas like beer production.

The announcement from Canada came the same week as European tariffs kicked in.

These drove iconic motorcycle manufacturer Harley Davidson to plan a move of manufacturing operations overseas for bikes sold in Europe. Tariffs implemented there also included whiskey and demin jeans, among other items.

This occurred as threats to end the North American Free Trade Agreement (NAFTA) hang in the air, and negotiations on improving the treaty have stalled. Citing issues with the Canadian dairy lobby as an obstacle, the talks were put on hold until after the July elections in Mexico.

In response, General Motors filed comments with the Commerce Department, stating that such tariffs would “lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs.”

What this all will ad
Potential tariffs of 20 percent on autos have also been threatened by the president.
d up to remains to be seen. However, in the immediate future, Canadian Foreign Minister Chrystia Freeland says her government has no plans to escalate the trade dispute. That might change with the prospect of auto tariffs, though she stated that she hopes common sense would prevail.

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2 Comments

2 Comments

  1. Dean Perry

    July 1, 2018 at 3:45 pm

    What effect whiskey sales means corn farmers in Kentucky will be screwed… the soybean farmers already are!

    I bet Trump has never been on a farm…

  2. Robert Gray

    July 1, 2018 at 3:58 pm

    I’ll do my patriotic duty and buy more beef, whisky and Ketchup!!!

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