In response to Canada’s tariffs on US products, which went into effect yesterday, Trump has signed five new proclamations escalating the trade dispute. Three convert existing 50 percent duties on specified Canadian alcohol, dairy, and motorcycle products into outright import bans, effective September 29 at 12:01 a.m. Eastern. The other two revise the scope of goods still subject to the 50 percent duty, effective September 15, adding items such as certain cheeses, all-terrain vehicles, and motorboats while removing others such as cement, road salt, and certain hospital paper products.
For alcoholic beverages, the alcohol ban proclamation covers a wide range of products under Section 338 of the Tariff Act of 1930, including beer, wine, cider, sake, whisky, rum, gin, vodka, brandy, tequila, mezcal, and other spirits, as well as non-alcoholic beer. Coverage is defined at the HTSUS subheading level in the list of covered products, and several subheadings apply only to products packaged in bottles, cans, kegs, or similar direct to consumer containers, while others reach bulk shipments as well.
The bans apply regardless of USMCA origin. Goods already imported but not yet entered for consumption before September 29 remain subject to the existing 50 percent duty rather than the ban. We will provide updates as they become available. Please reach out to us with any questions.