Could the CANADA Act deepen the US-Canada drinks trade war?

The US House could soon launch a formal trade investigation into Canada's restrictions on American alcohol, following the introduction of the CANADA Act by Republican congresswoman Claudia Tenney. If the investigation proceeds under Section 301 of the Trade Act, it could lead to retaliatory tariffs and deepen the ongoing tit-for-tat dispute between Washington and Canadian provinces, where restrictions on US beer, wine and spirits were imposed in response to Trump's 25% tariffs on Canadian imports last year. The investigation doesn't automatically trigger penalties, but it would significantly increase pressure on Canada to negotiate and could prolong uncertainty across the North American drinks trade.