Alcohol became a flashpoint in the US-Canada trade war. Now both sides say they're losing.

Alcohol makers in the US and Canada say they're hurting as a result of the trade war. John Fedele/Getty Images The US-Canada trade war escalated on Saturday with new 50% tariffs on Canadian alcohol. American booze was pulled from Canadian shelves last year and remains restricted in most of Canada. Alcohol makers in the US and Canada say both industries are hurting. What started as an eye-catching retaliation tactic to tariffs has become a sticking point in the US-Canada trade war — and neither side is standing down. The booze battle began last year after President Donald Trump imposed broad 25% tariffs on Canadian goods. Canada responded with its own 25% retaliatory tariffs targeting alcohol, among other products. The country's provinces went further, pulling American alcohol from shelves and halting new purchases or distribution. A year and a half later, American alcohol remains shut out of much of Canada.