Canada & Mexico: As reported on Friday, the tariff on non-USMCA eligible goods from Canada was increased from 25% to 35%. Reports today indicate that US President Trump and Canadian Prime Minister Mark Carney are planning talks to discuss trade this week. Trump reportedly increased the tariffs due to his perception that Canada has not done enough to decrease the flow of fentanyl over the border and more recently, the support from Canada of a Palestinian state. Canada reports that only 1% of fentanyl going into the USA is crossing from Canada. The 35% tariff on non-USMCA eligible products went into effect on August 1.
For Mexico, the 90-day pause on any change in the current tariff situation is holding, based on positive conversations between President Trump and Mexican President Claudia Sheinbaum, and it is reported that President Trump wants to get a trade deal done within the 90-day period.
Global tariff rates: As a quick summary on current tariff updates, below is a list for rates on key beverage alcohol producers:
UK: 10%
Chile: 10%
Argentina: 10%
Australia: 10%
EU: 15%
NZ: 15%
South Africa: 30%
Brazil: 50%
Moldova: 25%
India: 25%
Japan: 24%
South Korea: 15%
Thailand: 19%
Nicaragua: 18%
Above new tariffs go into effect on August 7, but “on water” exemption is available for goods in transit from final port via ocean before August 7. Should you need any other country specific rates, please let us know. We are continuing to work to negotiate exceptions for wine and spirits, especially from the EU. Beverage alcohol trade between the EU and the USA has traditionally been a zero for zero tariff basis for spirits and low tariffs on wine and beer, and the industry associations continue to pressure the administration to continue this treatment due to the strong trade flows in both directions.