Business news from Ukraine

Business news from Ukraine

U.S. Tariffs on Canada Will Affect Alcohol, Cement, and Consumer Goods

According to Experts.news, on July 20, U.S. President Donald Trump signed three executive orders imposing additional 50% tariffs on certain goods from Canada. The new rates are set to take effect on August 19, 2026, and will cover Canadian imports worth approximately $20 billion, or about 5.2% of all goods shipped from Canada to the U.S. in 2025.

Washington justifies this decision by citing discrimination against American automobiles, alcoholic beverages, and dairy products in the Canadian market. However, the U.S. tariffs are not limited to these specific goods. The White House has compiled three broad lists of Canadian products intended to exert economic pressure on various sectors of the country.

Which Products Will Be Affected by the Tariffs

The first group includes virtually all major types of Canadian-produced alcoholic beverages: beer, wine, vermouth, cider, other fermented beverages, ethyl alcohol, whiskey, rum, gin, vodka, liqueurs, and other spirits. The tariff will be levied in addition to standard customs duties.

The alcohol proclamation is a response to the decision by most Canadian provinces to halt the purchase and sale of American alcohol. According to the White House, imports of alcoholic beverages from the U.S. to Canada fell by 81% between March 2025 and February 2026—from $718 million to $137 million.

The second group covers dairy products and ingredients for the food industry. The list includes dry and concentrated milk, cream, whey, lactose, milk proteins, casein, and certain mixtures based on dairy components. These products are used not only in retail but also in the production of confectionery, baby food, sports nutrition, baked goods, and ready-to-eat food mixes.

Washington cites Canada’s tariff quota system for cheese as the reason for this decision. The U.S. argues that the terms of access for American suppliers to the Canadian market are less favorable than those granted to European Union producers under the CETA agreement.

The third and broadest list includes products not directly related to the automotive sector. Among them are cement, seeds and planting material, flowers, honey, certain food ingredients, essential oils, cosmetics, plastic products, packaging, paper products, wood panels, and furniture.

The list also includes clothing, textiles, footwear, leather goods, headwear, wigs, tools, fishing rods, swimming pools, and some sports equipment, including hockey sticks and other hockey gear.

Thus, the U.S. measures could affect both large industrial enterprises and small manufacturers of wine, furniture, clothing, cosmetics, sporting goods, and gardening products.

Which goods will not be subject to the new measures

The White House has excluded Canadian energy products, potash fertilizers, fish, and critical minerals from the new regime. Goods already subject to U.S. Section 232 sector-specific tariffs—including many types of steel, aluminum, copper, wood, cars, trucks, and pharmaceutical products—will not be subject to additional tariffs.

This limits the immediate scope of the decision. The U.S. is not imposing a 50% tariff on all Canadian imports, as a sharp rise in the prices of oil, gas, electricity, fertilizers, and industrial metals would cause serious harm to U.S. companies themselves.

At the same time, the new tariffs even apply to goods that meet the rules of origin under the United States-Mexico-Canada Agreement (USMCA). Previously, such goods could move between the three countries duty-free.

What Will Change for American Consumers

Formally, the tariff is paid by the American company importing the goods. It may require the Canadian supplier to lower the price, partially reduce its own margin, or pass the additional costs on to the buyer.

A 50% tariff does not necessarily mean an automatic 50% increase in the retail price, since the import cost is only part of the final price. However, for goods with a small markup, shipments from Canada may become economically unviable.

The most noticeable price increases may occur in the northern U.S. states, which have close ties to Canadian suppliers. This primarily applies to cement, building materials, furniture, beverages, and certain food products.

Higher tariffs on cement could increase costs for residential and infrastructure construction. Cement is difficult and expensive to transport over long distances, so not all regions will be able to quickly replace Canadian supplies with products from other parts of the world.

In the alcohol sector, some Canadian brands may disappear from U.S. stores and restaurants or move into a higher price category. A similar situation is possible in the hockey equipment market, where Canada is not only a major consumer but also an important manufacturer of specialized products.

What Lies Ahead for Canadian Manufacturers

For Canadian exporters, the U.S. is the primary and closest market. A 50% tariff could lead to a decline in orders, reduced capacity utilization, and pressure on manufacturers’ profits—especially if they are unable to quickly find buyers in other countries.

The most vulnerable will be companies located near the U.S. border and focused primarily on the U.S. market. Small wineries, furniture factories, and manufacturers of clothing and sports equipment will find it more difficult to redirect their products than large international corporations.

Canada will likely try to accelerate the reorientation of its exports toward the European Union, the United Kingdom, Asian countries, and other markets. However, transportation costs, differences in standards, and the need to rebuild distribution networks will limit the speed of this transition.

Who stands to gain from the trade realignment

The market share vacated by Canadian suppliers in the U.S. market could be filled by manufacturers from Mexico, the European Union, Latin America, and Asia.

European, Chilean, Argentine, and Australian companies may gain additional opportunities in the wine market. Manufacturers of clothing, furniture, and consumer goods from Mexico and Asian countries will also be able to increase their shipments to the U.S.

A similar process has already been observed in the Canadian market following restrictions on imports of U.S. alcohol. The White House notes that Canada has increased imports of beverages from the EU, Chile, Japan, Argentina, Ireland, New Zealand, and Australia.

However, such a shift does not always lower prices. Replacing a nearby Canadian supplier with a more distant producer increases transportation costs and complicates logistics.

The Risk of a New Round of the Trade War

Canadian Prime Minister Mark Carney expressed a willingness to continue negotiations but emphasized that the trade conflict is already increasing costs for families, particularly in the U.S. Ontario Premier Doug Ford called for retaliatory tariffs on a comparable volume of goods should the U.S. measures take effect.

If Ottawa introduces new retaliatory measures, they could target U.S. food products, alcohol, automobiles, industrial equipment, and goods from states that are politically significant to the Trump administration.

The conflict would then begin to affect not only specific product categories but also companies’ investment decisions. Businesses would be more cautious about locating new production facilities on both sides of the border, and inventories of components could increase as a safeguard against further restrictions.

Why This Decision Is Important for Global Trade

The legal basis for the tariffs is particularly significant. Trump invoked Section 338 of the Tariff Act of 1930, which allows for the imposition of up to 50% in additional duties against a country that discriminates against U.S. trade. According to Reuters, this is the first known instance of this provision being invoked in nearly a century.

The precedent set allows Washington to use a similar mechanism against other trading partners if their taxes, quotas, licensing requirements, or government procurement practices are deemed discriminatory toward U.S. companies.

This increases uncertainty for global business. Even the existence of a free trade agreement no longer guarantees that goods will be protected from additional U.S. tariffs.

The immediate impact of the new measures on the global economy will be limited, as they cover about $20 billion in imports.

However, the consequences could be significantly greater if Canada responds in kind and the U.S. begins to invoke Section 338 against other countries.

In that case, companies will more actively shift production closer to their main markets, create alternative supply chains, and reduce their dependence on any single country. This could increase trade resilience but, at the same time, raise the cost of goods and fuel inflation.

The new tariffs are not scheduled to take effect until August 19, so Washington and Ottawa have about a month left to negotiate. The ultimate outcome will depend on whether the parties can reach an agreement on automobiles, U.S. alcohol, and access for U.S. dairy producers to the Canadian market.

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Ukrainians’ attitude toward Canada remains one of most positive among all countries surveyed

Canada is among the group of countries that consistently enjoy a high level of positive perception within Ukrainian society. According to the survey results, 76.2% of respondents describe their attitude toward Canada as positive. Specifically, 39.4% of Ukrainians indicated a “completely positive” attitude, while another 36.8% described it as “mostly positive.” This distribution of responses indicates not only broad support but also a deeply entrenched positive image of the country.

At the same time, the level of negative perception of Canada is minimal—only 2.3% (1.4% “mostly negative” and 0.9% “completely negative”). This is one of the lowest figures among all countries included in the study. This result confirms that negative assessments are isolated and do not significantly influence overall perception.

The share of neutral responses is 20.3%, which is a moderate figure. This means that while most Ukrainians have already formed a positive attitude toward Canada, a certain portion of respondents lack sufficient personal experience or information to make a clear assessment. At the same time, only 1.2% of respondents were unable to decide on an answer, which further underscores the high level of certainty in public opinion regarding this country.

Overall, Canada demonstrates one of the most balanced and positive perception profiles: the combination of a high share of “fully positive” assessments with virtually no negativity forms a solid reputation capital. This indicates that the country’s image in Ukraine is based not only on general perceptions but also on a systematic view of Canada as a reliable partner.

“Canada is among those countries toward which Ukrainians have formed not just a positive, but a consistently positive attitude. This is the result of long-term interaction, support, and presence in the Ukrainian information space. In such cases, even neutral responses do not blur the overall picture, but only underscore its consistency,” noted Oleksandr Pozniy, director of the research company Active Group.

Thus, Canada ranks among the top countries with the highest level of trust in Ukrainian society. The combination of high positive perception and minimal negativity creates a foundation for further strengthening bilateral relations, particularly in the areas of politics, the economy, and humanitarian cooperation.

According to a study conducted by the Experts Club information and analytical center based on data from the State Customs Service, Canada ranks 41st in total trade volume of goods with Ukraine, with a figure of $416.2 million.

Imports of Canadian goods are twice as high as Ukrainian exports, resulting in a trade deficit of $139.9 million.

The study was presented at the Interfax-Ukraine press center; the video can be viewed on the agency’s YouTube channel. The full version of the study can be found at this link on the Experts Club analytical center’s website.

 

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Ukraine and Canada Expand Cooperation

Prime Minister Yulia Svyrydenko reported on her meeting with Canada’s Secretary of State for International Development, Randip Sarai, with whom she discussed new steps in cooperation—ranging from funding for energy resilience to joint projects in the areas of housing for veterans and the development of strategic resources.

“I briefed him on the government’s work to prepare for the upcoming heating seasons as part of regional stability plans, as well as on Ukraine’s key needs for energy equipment to develop distributed generation. We highly appreciate Canada’s consistent support in strengthening our state and the recently announced contribution of 20 million Canadian dollars to the Ukraine Energy Support Fund,” she wrote on Telegram.

Svyrydenko thanked Canada for its willingness to cooperate in establishing a veterans’ support fund, which is intended to strengthen the reintegration system for Ukrainians after their service. “We look forward to further cooperation, particularly in sharing expertise in the field of construction of housing for veterans,” she emphasized.

In addition, she said, the two countries discussed cooperation in the field of critical minerals and the development of mineral deposits. The parties agreed to deepen cooperation in geological exploration.

Svyrydenko also invited Canadian partners to become active participants in an international donor conference aimed at mobilizing efforts to restore a new safe confinement at the Chernobyl Nuclear Power Plant following the Russian attack.

 

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Biosphere has begun exporting Graff tea to Spain and plans to enter Canadian and European markets

The Tea&Food division of Biosphere Corporation, represented by the Graff and Ritz Barton brands, increased its production and sales by 2.5 times compared to the previous year, according to the company’s press service.

According to the report, sales volume increased from 1.4 million packs in 2024 to 3.5 million packs in 2025. Monthly turnover at the end of the year exceeded UAH 35 million, and the Graff brand entered the top 4 tea brands in Ukraine in terms of sales volume in retail chains. The company’s share of the domestic tea market is estimated at 5%.

“The growth of our tea business was driven by a strong marketing strategy and the development of relationships with major retail chains. The next step in our development is international expansion,” said Andriy Zdesenko, founder and CEO of Biosphere Corporation.

CupSoul CEO Iryna Broslavtseva emphasized the brand’s readiness to compete in foreign markets.

“The quality of our tea has been recognized not only by Ukrainian consumers, but also by numerous awards, including international ones. This proves that we are creating a European-quality product in Ukraine that can be competitive in foreign markets,” the press service quoted Broslavtseva as saying.

CupSoul, which is responsible for the tea division within the corporation, added that at the end of 2025, it began exporting Graff tea to Spain. During 2026, it plans to enter the Canadian market and further expand in Europe, particularly in Germany, Poland, and the Czech Republic, where the trademark has already been registered.

Despite a rocket attack on the production complex in Dnipro in the spring of 2025, which damaged the workshop and destroyed raw material stocks, the company resumed production within a month. Currently, the tea range includes 124 items. Over the past year, the brand has received a number of professional awards, including the Red Dot Award for packaging design and bronze awards at the Effie Awards Ukraine.

Biosphere Corporation is a leading manufacturer and distributor of household and personal hygiene products in Ukraine and one of the leaders in Eastern Europe and Central Asia. Its production facilities consist of six modern factories in Ukraine and two in Europe. Its portfolio of 25 brands includes Freken BOK, Smile, Novita, Lady Cotton, PRO service, Alufix, Vortex, Graff, and others, with about 2,000 SKUs. According to the release, Biosphere products are represented in more than 25 countries and over 100 retail chains, including METRO, Auchan, Spar, Billa, Carrefour, Albert, and Hofer.

The founder and CEO of the corporation is Andriy Zdesenko.

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Royal Canadian Mint has issued gold coin in shape of Ukrainian pysanka

The Royal Canadian Mint has issued a new collectible coin made of pure gold in the shape of a Ukrainian pysanka, dedicated to the traditions of Ukrainian folk art. This was reported by the Royal Canadian Mint.

“This exquisite pure gold pysanka vividly combines art and heritage. It embodies the spring celebration of elegance and harmony,” the coin’s description reads.

The new coin is the eighth gold “pysanka” in the Canadian Mint’s series. This time, its design is decorated with a rose ornament, a symbol of beauty and rebirth.

The coin was designed by artist Steven Rosati and Dave Melnichuk, a Canadian of Ukrainian descent who is a member of the Ukrainian Museum of Canada in Toronto.

The coin is made of 58.5 grams of pure gold and has a face value of 250 Canadian dollars. Only about 350 such coins have been minted, making them a collector’s item for numismatists.

The release of a series of coins in the shape of pysanka eggs is a tribute to Ukrainian cultural heritage, which is widely represented in Canada, home to one of the largest Ukrainian diasporas in the world.

As reported, banknotes with denominations of 1, 2, 5, and 10 hryvnia from 2003-2007 will be replaced by corresponding coins in circulation on March 2, 2026, and will no longer be legal tender (NBU).

Source: https://interfax.com.ua/news/culture/1149612.html

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Canada has allocated additional economic assistance to Ukraine in amount of $2.5 bln

Canadian Prime Minister Mark Carney announced additional economic assistance to Ukraine in the amount of 2.5 billion Canadian dollars, which will help unblock funding from the IMF, the World Bank, and the European Bank for Reconstruction and Development.

“Today we are announcing additional economic assistance to Ukraine. Economic assistance in the amount of $2.5 billion. This will help unlock funding from the IMF, the World Bank, and the European Bank for Reconstruction and Development to start this recovery process,” Carney said at the beginning of his meeting with Ukrainian President Volodymyr Zelensky.

In turn, Zelensky thanked Carney for his help and stressed the need to stop the war.

“And for this, we need two things: pressure on Russia and sufficiently strong support for Ukraine,” the president said.

He said he plans to discuss strengthening air defense with Carney.

“In recent weeks, we have made good progress in diplomacy, but we cannot live under the illusion that this allows us to have less air defense. It doesn’t work with Russia,” Zelenskyy said.

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