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Tariffs Targeting Canada and Mexico Paused for 30 Days
Just hours before tariffs were to take effect on both sides of the U.S.-Canadian border, President Donald Trump and Canadian Prime Minister Justin Trudeau reached an agreement to pause them for 30 days while negotiations take place. Canada agreed to increase its border security to fight against illegal drugs and immigrants, a key demand of the Trump Administration.
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
The move follows a similar agreement earlier today between Trump and Mexican President Claudia Sheinbaum, which will see 10,000 Mexican troops deployed along the border.
Whiskies from both countries were targeted for 25% tariffs, which would have been passed along to consumers in both countries.
Ontario Premier Doug Ford announced shortly afterward that his province’s retaliatory measures would be paused as well, including the removal of all American products from Liquor Control Board of Ontario stores. Ford said the measures were on hold, and could be reinstated immediately if Trump moves ahead with tariffs. Other provinces are expected to follow suit, including British Columbia, which had already removed American whiskies and other spirits from the province’s liquor stores in anticipation of the tariffs.
Kentucky Distillers Association President Eric Gregory responded to the pause with the following:
Three of Kentucky Bourbon’s largest producers also have significant exposure to the Canadian Whisky market. Diageo (Crown Royal), Suntory Global Spirits (Canadian Club), and Heaven Hill (Black Velvet) stood to be hit with tariffs on their imports from Canada, as well as their Bourbon exports to Canada.
Congressional Bourbon Caucus co-chair Rep. Morgan McGarvey (D-KY), said in a BlueSky post that the fight to block tariffs is ongoing.
Let’s be clear: this fight is far from over. There are 20,000 Kentuckians working in the bourbon industry who still have to worry about their jobs if the Trump tariffs go into effect next month. Their livelihoods should never be used as a bargaining chip — not now, not ever. bit.ly/4gp6l2k
— Rep. Morgan McGarvey (@repmcgarvey.bsky.social) February 3, 2025 at 5:17 PM
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This story will be updated with additional information.
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