In a sweeping move dubbed “Liberation Day”, former US President Donald Trump has announced a new wave of global tariffs, triggering alarm across key international sectors — including the beverage industry. While Canada has avoided the most extreme new levies, the implications are far from benign.
According to BBC News, Canadian Prime Minister Mark Carney has vowed to retaliate “with purpose and with force” after the US maintained a punishing 25% tariff on several Canadian exports, including steel and aluminium — key inputs for beverage packaging. Although Canada was exempted from the new 10% universal tariff, uncertainty remains around whether upcoming auto tariffs will impact cross-border supply chains critical to the sector.
As Foodbev Media reports, the US is imposing individualised tariffs on nations with significant trade deficits — some as high as 54% — with the global food and beverage industry bracing for supply chain disruptions and rising costs. While Canada avoided additional penalties this round, the continuation of March’s 25% tariffs on non-UMSCA compliant goods adds pressure to Canadian producers exporting to the US.
Just Drinks highlighted that European brewers are particularly concerned about the inclusion of beer and aluminium cans in the expanded US tariff regime, facing a 25% levy. Though directed at the EU, this sets a precedent that Canadian brewers and exporters should closely monitor, especially given the shared reliance on cross-border aluminium trade and similar packaging formats.
From a broader economic lens, NBC News detailed how Trump’s tariff strategy could reshape global trade. Despite claims it will “bring jobs back to America”, critics argue that it risks price hikes and supply chain volatility — factors that beverage producers, particularly those in Canada with US-facing operations, cannot afford to ignore.
Editorial Perspective
For Canadian beverage producers, the news is a mixed bag. The absence from the newest tariff list offers short-term relief — but the persistence of earlier tariffs, and ambiguity around future auto-related levies, pose serious challenges. Aluminium tariffs, in particular, could constrict packaging options and raise costs, with potential ripple effects on pricing and export competitiveness.
There’s also reputational risk: producers seeking to project stability and resilience may find their strategic planning undermined by unpredictable US trade policies. This is especially acute for small-to-medium enterprises dependent on US distribution channels.
Looking Ahead
As global trade tensions escalate, Canadian beverage businesses must act with foresight. Strengthening domestic supply chains, diversifying export markets, and lobbying for clear federal action should be high priorities.
Bevera urges beverage professionals to monitor trade policy developments closely, assess risk exposure to US tariffs, and proactively adapt sourcing and pricing strategies. The current disruption isn’t just a political episode — it’s a long-term strategic consideration.