Tariffs

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Brewers continue to face supply chain uncertainty stemming from actual and threatened tariffs. On June 27, the President announced an end to trade talks with Canada. The primary reason given was Canada’s implementation of a digital services tax, which falls most heavily on U.S. companies. At the time of writing, it is not clear whether the increase in trade tensions between the U.S. and Canada will affect the current tariff status quo between the two countries. Today the U.S.-Mexico-Canada Agreements exempts Canadian-grown barley and malt from recently imposed tariffs. July 9 marks the expiration of the 90-day pause on U.S. so-called “reciprocal tariffs” imposed by the President. As of press time, it is unknown whether the Administration will extend the pause.