On-Again, Off-Again Tariffs Paused for One Month

Once again, U.S. President Donald Trump has walked back from the brink of a trade war. The White House says the United States will pause the 25% tariff on goods from Canada and Mexico that Trump imposed on Tuesday.

According to the CBC, the pause only applies to goods covered by the US-Mexico-Canada Trade Agreement, and a White House official says approximately 62% of Canadian imports are not USMCA-compliant and remain subject to the 25% tariff. Whisky and other alcoholic beverages are covered by the trade agreement, meaning imports of Canadian whisky and Tequila from Mexico will not be subject to the tariffs.

Canadian Prime Minister Justin Trudeau says Canada will continue with its plans to impose retaliatory tariffs on $30 billion in American imports, including Bourbon and other American whiskies, until the U.S. removes the 25% tariff entirely. It remains to be seen whether the provinces that have pulled American whiskies and other alcoholic beverages from their liquor stores will return those items to the shelves.

Distilled Spirits Council CEO Chris Swonger praised the move in a statement Thursday afternoon:

“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.”

This story will be updated with additional information.