U.S. President Donald Trump’s trade war against Canada escalated on Tuesday with his outright ban on certain Canadian goods going into effect and a U.S. industry body is warning that his ban on Canadian alcohol will “ripple through” the U.S. restaurant industry.
“This new ban on Canadian alcohol products will ripple throughout the U.S. hospitality sector at a time when restaurants, bars and retailers are preparing for the busy holiday season,” the Distilled Spirits Council of the U.S. said in a statement on Tuesday.
Trump’s trade war against Canada has “has already taken a significant toll on U.S. wine and spirits producers,” the group added.
“The best outcome remains a negotiated solution that gets American spirits and wine products back on Canadian shelves, preserves consumer choice for consumers on both sides of the border and allows U.S. and Canadian hospitality businesses to focus on growth rather than becoming collateral damage in a trade dispute beyond their control,” the statement said.
Trump’s previously announced bans — which affect some alcoholic drinks, dairy byproducts and motorcycles, among other goods — came into force at 12:01 a.m. ET Tuesday.
The bans mark the latest escalation of the trade war as the Trump administration seeks to pressure Canada into concessions in trade talks.
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The trade restrictions could prove devastating for the affected industries, stakeholders say, though experts have cautioned the overall impact on Canada’s impact could be limited.
Trade talks collapsed between Canada and the United States last month after Ottawa walked away from the negotiating table in response to last-minute terms that Prime Minister Mark Carney says the U.S. demanded, including restrictions on Canada entering into new trade deals with other countries.
Since then, Trump has escalated his economic attacks against Canada, imposing multiple rounds of tariffs as well as import restrictions.
–with files from Canadian Press
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