Yesterday, U.S. President Donald Trump escalated his trade war against Canada, imposing 50-per-cent tariffs on a range of goods in response to Canada curbing imports of U.S. autos, alcohol and dairy. We can confirm that this includes craft beer and is set to take effect on August 19, 2026.
The tariffs will not include an exemption for goods trading under the U.S.-Mexico-Canada Agreement, broadening the economic damage and further straining efforts to resolve the trade war.
This development comes at a time when the craft beer sector continues to face unprecedented challenges from historic inflation that has pushed many breweries to the brink, along with other cost increases, pricing pressure and a challenging labour market.
Although the U.S market represents only a tiny fraction of overall Canadian craft beer sales, it’s impact could be significant for breweries that have been trying to penetrate the U.S market and have invested time and capital in their expansion plans. The Canadian Craft Brewers Association continues to advocate for a negotiated resolution and appropriate support for our industry as we continue to confront additional uncertainty. To help mitigate these challenges we continue to work with all levels of government to help create a ‘One Canadian’ economy that can better withstand external shocks, while advancing excise tax modernization and provincial tax reforms to encourage the consumption of Canadian owned & made products.