The Globe and Mail·3 min read·medium

Canadian alcohol producers face a U.S. ban, but some shipments can still cross the border

M
Meera Raman, Nathan VanderKlippe
Canadian alcohol producers face a U.S. ban, but some shipments can still cross the border
AI Summary

New U.S. import bans on Canadian alcohol products, effective September 29, are disrupting the operations of small Canadian producers. While the ban targets consumer-packaged goods, larger companies may find ways to adapt through bulk shipping.

Why it matters

The escalating trade war between the U.S. and Canada is creating significant economic hardship for small-scale exporters in the beverage industry.

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Mike Heisz, owner of Junction 56 Distillery in Stratford, Ont., says he would eventually like to sell in nearby U.S. states, but the continuing trade pressure has stopped that from happening. Nicole Osborne/The Globe and Mail

Ibtisam Tariq rushed to get his final shipments of cider across the U.S. border before a 50-per-cent tariff on Canadian alcoholic beverages took effect late last month.

The founder of Revel Cider in Guelph, Ont., relies on the U.S. for about 10 per cent of his business. But his importer told him the tariffs made further shipments unfeasible, and orders dried up. He hoped the disruption would be temporary, and that Canada and the U.S. would reach a trade deal.

Then came another blow. On Tuesday, U.S. President Donald Trump signed an order banning imports of a broad range of Canadian alcoholic beverages, including packaged cider.

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