MILWAUKEE — As one of his first measures back in office, President Donald Trump announced steep tariffs on most imported goods from Canada, Mexico, and China.
A 25% tariff on all products coming from Mexico has been delayed by one month after Mexico agreed to ramp up its border security, but all three countries have already promised retaliation.
Canada quickly responded by threatening 25% tariffs on U.S. imports, and two of Canada's biggest provinces said they would remove U.S. alcohol from liquor store shelves.
Milwaukee's Lakefront Brewery was informed that orders for its Canadian exports have temporarily stopped.
Mariam Mackar spoke with the brewery's president, Russ Klisch, who said that if the trade wars aren't resolved, local breweries and distilleries will bear the consequences.
Klisch took Mackar behind the scenes of the canning and packaging process for Lakefront's gluten-free beer, which is exported to Canada.
The Milwaukee business is one of Canada's top distributors of gluten-free beers and has been exporting beer there since 2007.
Watch: Milwaukee's Lakefront Brewery shares concerns over potential Canadian tariffs
"Nineteen years we've been selling it. We're [Canada's] first gluten-free brewery," Klisch said.
Klisch added that if the tariffs continue, the brewery will be forced to consider producing its beer in Canada.
"Essentially, if we can't sell it there and there's still a market for our beer, then we'd try to do what we can to keep our brand viable there," he said.
With nearly 4% of their annual production going to Canada, Klisch said the halt in sales will be felt in Milwaukee.
"We'll probably have other belt-tightening moves we’ll need to make if we can't sell the product," Klisch told Mackar. "I just hope they’re able to come to a conclusion soon."
As of Monday afternoon, tariffs on Canada have been delayed by a month as negotiations with Canadian Prime Minister Justin Trudeau continue. President Trump said the pause is taking place as the country has taken steps to address his concerns about border security and drug trafficking.
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