
President Trump has announced his plan to carry through with his promise to impose tariffs on three of the United States major trading partners. Trump claims the tariffs on Canada, Mexico, and China will help to curb the “threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).”
The Whitehouse website says, “Until the crisis is alleviated, President Donald J. Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff.”
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Update: Feb 3, 2025
Tariffs on Canada and Mexico will be paused for 30 days as both countries agree to work with US on border security. Will Canadian threats to remove brown spirits like Bourbon and Tennessee Whiskey from red states slow down too?
– The White House Southern Border Update
– The White House Northern Border Update
Update: Feb. 3, 2025
A Statement from the Kentucky Distillers’ Association
Kentucky Bourbon creates thousands of jobs, spurs economic development, and brings America’s only native spirit to shelves across the globe. We commend President Trump and President Sheinbaum of Mexico and Canadian Prime Minister Trudeau for working on a resolution and suspending tariffs for 30 days. We look forward to permanent agreements that will enable Kentucky Bourbon to be enjoyed internationally.
~ Eric Gregory, Kentucky Distillers’ Association President
Canada, Mexico, and China have already talked about the possibility of retaliatory tariffs some of which could directly affect the distilled spirits industry in the U.S. and throughout the world. The Distilled Spirits Council of the United States (DISCUS), the Chamber of the Tequila Industry, and Spirits Canada on Tariffs on Imports from Canada and Mexico have already jumped into action by releasing a joint statement to try to prevent what could become a catastrophe for the spirits industry.
“Our associations are committed to working collaboratively with all stakeholders to explore solutions that prevent tariffs on distilled spirits. We are deeply concerned that U.S. tariffs on imported spirits from Canada and Mexico will significantly harm all three countries and lead to a cycle of retaliatory tariffs that negatively impacts our shared industry.
“Maintaining fair and reciprocal duty-free access for all distilled spirits is crucial for supporting jobs and shared growth across North America. Our industries have thrived due to the level playing field established across our borders.
“The North American spirits sector is highly interconnected. Many companies own brands in all three countries, contributing positively to local economies. Certain spirits, such as Bourbon, Tennessee Whiskey, Tequila and Canadian Whisky, are recognized as distinctive products and can only be produced in their designated countries. Bourbon and Tennessee Whiskey can only be made in the U.S., Tequila in Mexico, and Canadian Whisky in Canada. The imposition of a tariff not only negatively impacts trading partners but also harms domestic industries.
“Since the 1990s, trade in spirits in North America has been largely tariff-free, resulting in significant growth. U.S.-Canada trade in spirits increased by 147%, while U.S.-Mexico trade surged by 4,080%. This demonstrates how vital our cooperative efforts have been for job creation and economic stability.
“However, recently the North American spirits sector is experiencing a slowdown due to the continued impact of COVID and economic factors like inflation. This slowdown will be exacerbated if a cycle of tariffs and matching retaliation begins, and the impact will be felt not just by the distilled spirits industry, but also by consumers and the struggling hospitality sector, which is still recovering from the pandemic.
“We urge all parties to engage in constructive dialogue to address these concerns proactively and maintain our shared commitment to a thriving spirits industry across North America.”
🇺🇸🇨🇦 Canadian retailers are restocking their shelves with American-made products following Prime Minister Trudeau's $1.3 billion agreement with President Trump.
— The Global Beacon (@globalbeaconn) February 3, 2025
h/t @libsoftiktok pic.twitter.com/doe6KnTaXZ
British Columbia Premier David Eby has ordered to STOP purchasing American liquor from "red states" in response to Trump tariffs. pic.twitter.com/lULgHh3URd
— TaraBull (@TaraBull808) February 2, 2025
B.C. Premier David Eby declares his first step in retaliating against 🇺🇸 tariffs is to direct B.C. Liquor stores to immediately stop buying liquor from “Red States” but not Blue States.
— Rowan (@canmericanized) February 2, 2025
It’s School Council Amateur Hour! pic.twitter.com/5neM4fjXPl
A 30-day pause in tariffs offers more time for negotiations and more time for cooler heads to prevail. Instead of fighting each other, we need to work together to make Canada and the U.S. the richest, most successful, safest, most secure two countries on the planet. Watch my… pic.twitter.com/r4sXN2Yxqc
— Doug Ford (@fordnation) February 3, 2025
Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits and seltzers. Not anymore.
— Doug Ford (@fordnation) February 2, 2025
Starting Tuesday, we’re removing American products from LCBO shelves. As the only wholesaler of alcohol in the province, LCBO will also remove American products from its…
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