
Canadian trade officials, led by Minsister Dominic LeBlanc, continue talks in Washington DC with U.S. negotiators to work toward an agreement to avert the 50% tariffs scheduled to take effect on August 19. The ban on US alcoholic beverage from most Canadian provinces is one of the core disputes. Unlike past Canada tariffs, this one applies even to USMCA-qualifying goods, so there’s no origin-certificate exemption. Section 338 as a legal tool to impose this type of tariff may also be challenged in court as a mis-interpretation or mis-use of the statute. In the meantime, if you import Canadian wine, whisky, or other spirits, it is prudent to ship anything possible prior to the August 19 date, or plan for worst case scenario of a 50% tariff hitting on the 19th. We will update any new developments as soon as news is available.