Canada-USA Trade Update:
The Canadian alcohol import ban is still scheduled to be implemented on September 29. Other commodities and procurement bans were also confirmed by the USTR via official press release this week. However, Canadian Finance Minister Champagne met with US Treasury Secretary Bessent last week, and Prime Minister Carney confirmed he’s spoken with Trump “in recent days.” A senior U.S. official told Bloomberg there have been “constructive conversations” with more expected soon. Trump said Canada is “dying to make a trade deal” and denied considering USMCA withdrawal. Canada has not announced any plans to retaliate against the bans at this time. While there is no resolution, the good news is that talks are ongoing and this is the first real sign of de-escalation since talks collapsed last month. Separately, the Toasts Not Tariffs Coalition (WSSA is an active member) issued a statement this week urging both countries to avoid bans and other measures that “disrupt supply chains, limit consumer choice and create uncertainty for hospitality businesses,” especially heading into holiday inventory season.

For context on just how much this dispute is already costing the trade: per the latest U.S. duty-paid import data (through July 2026), Canadian whiskey imports are down 21% by volume year-to-date versus 2025, Canadian vodka is down 23%, Canadian wine is down 32%, and Canadian beer is down 30% — and that’s all before the alcohol ban even takes effect. Worth keeping in mind as you plan inventory for the rest of the year.

As reported previously, the other good news is that the 50% Section 338 tariff on some alcoholic products has been removed as of September 15, and these products are not subject to the planned September 29 banned alcohol.

Good News: Irish Whiskey Tariff Removal Announced
At the close of the Irish Open golf tournament, Trump announced plans to remove the 10% tariff on Irish whiskey, following the earlier removal of tariffs on UK whiskey (Scotch) in July. No implementation date has been set yet. We are keeping an eye out for the formal announcement and tariff adjustment and will report as soon as available.

Panama Canal Restrictions
The Panama Canal remains in drought conditions. Transits were cut from 36 to 34 per day on September 3, dropping again to 32 on September 15, with draft also reduced to 47.5 feet on September 3 — all tied to a rainfall deficit estimated around 60% below normal for this point in the wet season. Carriers have already started layering on emergency surcharges, and this typically only gets tighter once the dry season starts in January. What’s new and specific to this year: demand for canal slots is being pushed up by the Strait of Hormuz situation, as more tankers are rerouting fuel supply through the U.S. and then transiting Panama. A limited number of daily slots are auctioned off, and competition is fierce. A Korean tanker paid a record $5.3 million for a single slot in August. Bottom line: expect continued surcharges on Panama-routed lanes, and upward rate pressure for Q4/Q1 levels.

Watch Item: Russia Sanctions Bill Could Hit EU Wine and Spirits
The House is expected to vote this week on the Russia Sanctions Act (HR 5334), which would let the President impose tariffs up to 100% on any goods from countries that buy Russian oil or gas, without requiring an investigation first. The EU currently buys Russian energy, so this could theoretically expose EU wine and spirits to steep new tariffs if enacted. It already passed the Senate; the House vote is expected to be close. WSSA has signed onto a joint association letter opposing the bill’s tariff provisions. We’ll flag the outcome as soon as it’s known.

German Ports: Strike Vote Moves Toward Indefinite Action
After a fourth round of talks produced an improved but still-rejected offer (3.4% over 12 months plus some additional allowances — 64.7% of voting members rejected it), ver.di has launched a formal strike ballot running through October 1. If at least 75% of participating members vote yes, the union’s bargaining committee will decide whether and when to call indefinite strikes. Nothing happening immediately, but this is worth watching closely over the next two weeks.

Strait of Hormuz: Competing Claims on Whether It’s Actually Open
The U.S. military says the strait remains open and traffic is flowing, pushing back on the idea that Iran controls it. Vessel transit counts are recovering somewhat but still fluctuate well below normal (6 to 12 vessels a day this week versus 100+ before the crisis), and a vessel was struck as recently as September 13. We continue to monitor the situation and impact on the wine and spirits trade lanes.

Upcoming: Rotterdam Port Closed to Rail September 26–30
Rotterdam will be inaccessible by rail from 11:00 PM Saturday, September 26 through 3:00 AM Wednesday, September 30. Trains won’t be able to enter or leave the port during that window. Factor this into any bookings that would transit Rotterdam by rail in late September.

Compliance Reminders
Today, September 18, is the deadline for CBP to begin voiding importer of record numbers over inaccurate Form 5106 data (physical address, email, phone number). If you haven’t checked yours yet, do it now. Separately, CBP has added SMS as an option for ACE Portal login verification, alongside the existing email option; it’s optional but may be more convenient for some users.

LCL Services from France, Italy, and Spain/Portugal – Space available for October sailings!  Bi-monthly departures continue from each of these countries for your small shipments, offering a per case rate from point of pick up to the Alba Wine and Spirits warehouse in Edison, New Jersey. All containers continue to run as operating reefers, ensuring your cargo is protected from summer and fall heat. Shipments from other European countries can be added into the mix, with pick-ups offered in most European countries. Please let us know if you need any further information!