US alcohol industry groups are calling on both sides of the North American border to swiftly resolve their tariff dispute after talks broke down last week.
A 50% tariff from the US on goods from Canada, including alcohol and dairy products, came into force over the weekend, after both countries failed to reach a deal.
On Saturday (22 August), Canadian Prime Minister Mark Carney said his country "will match Washington's new tariffs dollar for dollar".
In his statement, Carney said: "While we believed, earlier this week, that we were moving toward a mutually beneficial agreement, in recent days, the US proposed new terms that were uneconomic, unfair and undermined the net benefits to Canada, calling into question the reliability of any deal.
"In short, they asked too much and offered too little. More fundamentally, the cumulative effect of US demands revealed the limits of their commitment to a true economic partnership. As a result, last evening, I suspended trade negotiations with the US and directed Canada's negotiators to return to Ottawa. They worked hard, in good faith, to the last minute to defend the interests of Canadians."
Last week, the US had delayed introducing the new tariffs on a range of Canadian goods by three days, after Trump said the two countries had reached a deal.
However, in a social media post on Truth Social over the weekend, President Trump said: "Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!"
The Toasts not Tariffs Coalition, which is made up of 59 US bev-alc associations, said it recognised Trump's efforts to try to motivate Canadian provinces to bring back US alcohol to their shelves but added: "A 50% tariff on Canadian spirits, wine and glass bottles will also have consequences for US hospitality businesses."
The coalition said: "We urge leaders in both countries to resolve this dispute quickly, secure the return of US wine and spirits across Canada, and avoid further actions that increase costs and uncertainty for hospitality businesses and the consumers they serve."
The White House announced last month the tariffs would be imposed in response to what the administration described as Canada's "discriminatory treatment" of US products.
Affected products include spirits, wine, beer and cider, as well as dairy goods such as milk, cream, dried whey and whey protein concentrates.
Chris Swonger, the president and CEO of the Distilled Spirits Council of the US, has also called for officials to return to the negotiating table.
"We encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for US spirits throughout Canada and returns spirits trade to a zero-for-zero tariff framework," he said.
He added: "We appreciate the administration's recognition that American distillers have been unfairly targeted by these Canadian provincial sales bans.
"It is unfortunate that the Canadian provinces' continued refusal to return US spirits products to store shelves has led to this outcome."
Just Drinks has approached Spirits Canada for comment.
Canadian provinces including Ontario and Quebec started pulling US alcohol from their shelves in March last year as a response to US tariffs on Canadian goods.
In a note to clients on Friday, TD Cowen analyst Robert Moskow said the breakdown in talks between the US and Canada symbolises "a modest challenge for Diageo's Canadian whiskey".
He said the new tariff "creates an incremental cost pressure" for Diageo's Canadian whiskey brand Crown Royal, a brand the spirits giant is already looking to revitalise.
Moskow added the lack of a new trade deal between Canada and the US "also makes it unlikely that American whiskey will return to provincial liquor store shelves in Canada, which is a negative for Brown-Forman".
"Alcohol industry urges US, Canada to resume tariff talks" was originally created and published by Just Drinks, a GlobalData owned brand.