Brief
Australia Seeks to Exploit Canada’s Alcohol Gap Amid US‑Canada Tariff War
Australia’s trade minister will use the G20 summit to push for greater market access in Canada, arguing that US tariffs on lamb and a Canadian ban on American alcohol create a commercial opening.
By Felo News Desk · Published
Trade Minister Don Farrell will use this week’s G20 summit in Milwaukee to press the United States to lift tariffs on Australian lamb and to seek greater access for Australian wines and spirits in Canada. Farrell said the US has an obligation under the free‑trade agreement to remove tariffs and not impose new ones on Australian lamb, which supplies about half of the American market.
US‑Canada Tariff Clash
Trump’s administration has considered new tariffs on Australian lamb, a move Farrell warns would hurt American consumers by raising prices. He will address the issue directly with US Agriculture Secretary Brooke Rollins at the summit. The US has also imposed a retaliatory ban on Canadian alcohol products, effective Tuesday, which has left a gap in Canada’s market that Australia sees as an opportunity.
Australia’s Market Opportunity
Australian wine exports to Canada rose 13 % in volume and 20 % in value to $188 million in 2025‑26. Farrell estimates that quickly filling the gap left by the ban could add more than $100 million in trade at the start. He said the wine industry is facing difficulties across the country and that Canada is a priority growth market under the Accessing New Markets Initiative, a $55 million government strategy.
Broader Trade Strategy
Farrell said Australia is aligning itself with Canada and other middle powers that are looking to form new partnerships as the US retreats from multilateralism under Trump. He added that Australia’s trade relationship with the US remains overwhelmingly in favour of the US, but that the country wants good relations with its second‑largest trading partner and most important military partner.
Key facts
- Trade Minister Don Farrell will seek greater market access for Australian wines and spirits in Canada at the G20 summit (smh.com.au)
- Farrell will argue that US tariffs on Australian lamb are a potential roadblock to the US‑Australia relationship (smh.com.au)
- Australian wine exports to Canada rose 13% in volume and 20% in value to $188 million in 2025‑26 (smh.com.au)
- US has imposed a retaliatory ban on Canadian alcohol products, effective Tuesday (smh.com.au)
- Farrell estimates filling the gap could add more than $100 million in trade at the start (smh.com.au)
Background
The US‑Canada trade war has escalated with both sides imposing 50 % tariffs on $20 billion worth of goods. Small businesses on both sides report lost sales and higher input costs. Australia’s move follows a broader trend of countries seeking new markets amid US trade tensions.
Why it matters
The US tariffs on Australian lamb and the Canadian ban on American alcohol create a commercial opening that could shift trade flows and affect consumers and producers in both countries.
What happens next
Farrell will present his case to US Agriculture Secretary Brooke Rollins and meet with Canada’s International Trade Minister Maninder Sidhu during the summit.
Sources
- [1] smh.com.au — originally reported as “Australia’s plan to swoop on Trump’s trade war with Canada”
