Trump Bans $800 Million of Canadian Booze as US-Canada Trade War Deepens
Updated
Updated · CNN · Sep 29
Trump Bans $800 Million of Canadian Booze as US-Canada Trade War Deepens
3 articles · Updated · CNN · Sep 29
Summary
$800 million of Canadian alcoholic beverages became subject to a US import ban on Tuesday, marking an unprecedented escalation against a close ally.
Section 338 of the 1930 Smoot-Hawley Act is the legal basis for the move, which follows 50% tariffs and Canada's provincial bans on US alcohol in a widening tit-for-tat fight.
Most US shoppers may not feel an immediate hit because distributors stocked up and bulk shipments over 4 liters of whisky and liqueurs remain exempt, though rebottling could raise costs.
The ban lands unevenly: US spirits exports to Canada have already plunged 70% since March 2025, while 93% of Canadian spirits were sold into the US market last year.
Trump predicted Canada would seek a deal within three to four weeks, but analysts say the measure is largely symbolic pressure and Prime Minister Mark Carney is not rushing to negotiate.