Targeted Federal Supports for Canadian Beverage Manufacturers

Issue

Canadian beverage manufacturers are being disproportionately harmed by U.S. aluminum tariffs and the removal of the de minimis exemption, which together impose unavoidable costs and administrative burdens on canned beverage exports that are not mitigated by CUSMA and cannot be avoided due to the lack of domestic beverage grade packaging alternatives.

Background

The Canadian beverage manufacturing sector is resilient, export-oriented, and deeply rooted in regional economies. However, the combined impact of U.S. aluminum tariffs and border policy changes now threatens its competitiveness despite full compliance with trade agreements. Targeted, time-limited federal supports are urgently required to stabilize the sector, protect Canadian jobs, and uphold the integrity of Canada’s trade and manufacturing strategy.

Recommendations

The Alberta Chambers of Commerce recommends that the Government of Canada:

1. Create a temporary export tariff offset or rebate program for Canadian beverage manufacturers exporting aluminum canned products to the United States, calibrated to Section 232 aluminum tariffs paid on finished beverage containers.
2. Pursue retroactive bilateral and domestic targeted Remission Orders covering aluminum can sheet, empty cans, and lids used exclusively in beverage manufacturing.
3. Work with Export Development Canada to implement sector-specific support streams for beverage manufacturers impacted by tariff disruption, including, working capital guarantees tied to tariff-related cash flow strain, trade disruption insurance for cancelled or renegotiated U.S. contracts and advisory support for exporter-of-record restructuring and market diversification
4. Accelerate investment incentives for domestic aluminum rolling, can manufacturing, and alternative packaging innovation, including:
        a. Strategic Innovation Fund and Net Zero Accelerator prioritization
        b. Tax credits or capital cost allowances for beverage packaging infrastructure
        c. Support for Canadian-made standard and non-standard can formats
5. Prioritize aluminum packaging and downstream manufactured goods in the upcoming 2026 CUSMA review, including:
        a. Seeking carve-outs or quotas for beverage containers
        b. Addressing tariff stacking on integrated North American supply chains
        c. Aligning de minimis and customs modernization approaches for trusted traders