The 25% tariff yoyo between the U.S., Mexico and Canada continues. As Canadian provinces start to remove more than 3,000 U.S. distilled spirits from their shelves, President Trump has suspended tariffs on goods covered by the “United States-Mexico-Canada Agreement” that went into force on July 1, 2020. Details of that agreement are below.
The Distilled Spirits Council of the United States (DISCUS) released the following statement.
Distilled Spirits Council President and CEO Chris Swonger Statement in Response to President Trump’s Suspension on Imports from Mexico and Canada that Comply with USMCA
“President Trump’s decision to suspend tariffs on imports from Mexico and Canada that comply with the U.S.-Canada-Mexico Agreement (USMCA) is great news for the Canadian, Mexican and U.S. distilled spirits industries.
“Spirits produced in Canada, Mexico and the United States are all covered under USMCA. The USMCA has helped to ensure the continued growth of the U.S. spirits and hospitality industries, promote job growth and drive economic prosperity across the nation. We are hopeful that constructive dialogues continue between the U.S., Canada and Mexico that permanently brings back zero for zero tariffs for spirits trade between our three countries. We want Toasts Not Tariffs.”
Most secure job in Canada in 2025 is the liquor-store employee whose job it is to remove U.S. booze from shelves, only to put it back the next day.
— Don Bradshaw (@DonBradshawNTV) March 6, 2025
🎶You take one down, pass it around, 98 bottles of booze on the wall🎶#Trump #TrumpTariffs #CanadaUSTradeWar #CanadaStrong pic.twitter.com/zCuPDasMRn
United States-Mexico-Canada Agreement
The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and grow the North American economy.
Agreement highlights include:
- Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products, and disciplines on currency manipulation.
- Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening food and agriculture trade in North America.
- Supporting a 21st Century economy through new protections for U.S. intellectual property, and ensuring opportunities for trade in U.S. services.
- New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the Agreement.
To view the full text of the agreement between the United States, Mexico and Canada, click here.
USMCA Trade & Investment Summary
U.S. goods and services trade with USMCA totaled an estimated $1.8 trillion in 2022. Exports were $789.7 billion; imports were $974.3 billion. The U.S. goods and services trade deficit with USMCA was $184.6 billion in 2022.
U.S. goods exports to USMCA in 2022 were $680.8 billion, up 16.0 percent ($94.1 billion) from 2021 and up 34 percent from 2012. U.S. goods imports from USMCA totaled $891.3 billion in 2022, up 20.5 percent ($151.5 billion) from 2021, and up 48 percent from 2012. U.S. exports to USMCA account for 33.0 percent of overall U.S. exports in 2022. The U.S. goods trade deficit with USMCA was $210.6 billion in 2022, a 37.5 percent increase ($57.4 billion) over 2021.
U.S. exports of services to USMCA were an estimated $109.0 billion in 2022, 23.6 percent ($21 billion) more than 2021, and 17 percent greater than 2012 levels. U.S. imports of services from USMCA were an estimated $83.0 billion in 2022, 27.0 percent ($17.6 billion) more than 2021, and 66 percent greater than 2012 levels. Leading services exports from the U.S. to USMCA were in the travel, professional and management services, and financial services sectors. The United States has a services trade surplus of an estimated $26.0 billion with USMCA in 2022, up 14.0 percent from 2021.
U.S. foreign direct investment (FDI) in USMCA (stock) was $569.0 billion in 2022, a 9.5 percent increase from 2021. U.S. direct investment in USMCA is led by manufacturing, nonbank holding companies, and finance and insurance.
USMCA’s FDI in the United States (stock) was $623.1 billion in 2022, up 8.0 percent from 2021. USMCA’s direct investment in the U.S. is led by finance and insurance, manufacturing, and depository institutions.
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