Canada has suspended a 10 percent tariff on U.S. aluminum cans after the brewing and beverage industry complained about shortages and product interruptions. Effective on July 1, the country imposed a 25% tariff on metal products and a 10% tariff on over 250 other U.S. goods as retaliation for similar tariffs which were imposed by the Trump-administration on Canada, Mexico and Europe one month before.
16 oz (473 ml) tall cans are not produced in Canada and have to be imported from the United States. The product was already in short supply after Crown Holdings closed its plant in Massachusetts in January and the tariff aggravated the situation even more.
Canada’s beer makers welcomed the move of the Canadian authorities. Luke Harford, president of trade association Beer Canada told Reuters: “It’s very positive for us. The 473 ml tall cans are all purchased from U.S. suppliers and that particular can is one of the fastest-growing cans… particularly amongst small brewers.”
Despite a new trade pact with Canada and Mexico, U.S. President Donald Trump did not lift the 10 percent U.S. tariff on imported aluminum “until such time as we can do something different,“ which might mean imposing quotas instead.