Wednesday, July 1, 2026
ADVT 
National

Shots over the bow: Why provinces are using liquor leverage in trade war with U.S.

Darpan News Desk The Canadian Press, 06 Mar, 2025 12:04 PM
  • Shots over the bow: Why provinces are using liquor leverage in trade war with U.S.

The dozens of Kentucky bourbons listed on the BC Liquor Stores website range from a two-ounce bottle of Maker's Mark, priced at $5.29, to a $2,400 bottle of Woodford Reserve, aged in cognac barrels and presented in a crystal decanter.

What they all have in common is the "currently unavailable" designation, having been yanked from sale by British Columbia's government in retaliation for U.S. President Donald Trump's tariffs on Canadian imports.

Calling time on U.S. alcohol has been a popular move among Canadian provincial and territorial governments looking for ways to fight back in the trade war. 

It's a way of capitalizing on government control over the alcohol sector, says Samuel Roscoe, a lecturer at the University of British Columbia's Sauder School of Business.

He said B.C. and other provinces are using their jurisdiction over alcohol sales to damage the pocketbooks of American companies and send a message that the U.S. tariffs are unjustified and harmful on both sides of the border.

"In my opinion, it's quite an effective way to get the attention of U.S. companies and for them to realize that tariffs lead to trade wars, and we are now two days into a very significant trade war between (what) used to be two trading partners," he said on Wednesday.

Governments don't have the authority or ability to implement such a prohibition for many other types of goods purchased by private businesses, Roscoe said.

"It's very difficult for the government to step in there, and that's why they have the targeted tariffs," he said of the U.S. alcohol ban, as well as Ottawa's adoption of 25 per cent counter tariffs on $30 billion in goods imported from the United States.

Provinces including Ontario, Quebec and Alberta, among others, have directed their liquor regulators to stop buying all American alcohol, while B.C. has banned liquor from "red states" that voted for Trump last fall.

The B.C. government's tariff response website says the actions will result in an estimated $40 million annual loss for manufacturers "in the states governed by elected officials most supportive of Trump's unfair tariffs."

The moves have the attention of Kentucky Governor Andy Beshear, a Democrat in an otherwise deeply red state who has spoken out against Trump's tariffs, saying the trade war would cause "significant harm" to people and businesses, including those involved in the bourbon industry.

"These tariffs, which are the result of one individual, are going to cause our prices of gas to go up, are going to cause our prices of groceries to go up, are going to raise the cost of housing all across the United States," Beshear said during an appearance on CTV News Channel's Power Play this week.

Last month, Beshear wrote to members of the Kentucky congressional delegation in Washington expressing "serious concerns" about the impacts of retaliatory measures by Canada on the state's bourbon industry.

The bourbon industry accounts for more than $9 billion in economic output each year and supports more than 23,000 jobs in the state, he wrote.

The CEO of Brown-Forman Corp., the maker of Jack Daniels, said the decision by Canadian provinces to take U.S. whiskeys off shelves is "worse than a tariff because it’s literally taking your sales away."

Lawson Whiting said the action is "a very disproportionate response to a 25 per cent tariff."

Canada accounted for only 1 per cent of Brown-Forman's total sales, he noted.

Speaking to reporters on Wednesday, B.C. Premier David Eby said he had seen concerns from Kentucky about the "boycott" of American alcohol.

"Their concern is of course the Canadian boycott but also the prospect of a Mexican boycott as well as the prospect of a European Union boycott," he said.

In a statement to the legislature the same day, Eby said pulling Florida rum, Texas vodka, Tennessee whiskey and Kentucky bourbon from B.C. shelves would "show the president's allies about the integrated nature of our relationship."

Not everyone is convinced banning American alcohol is the best strategy, including Michael Devereux, a professor at the University of B.C.'s Vancouver School of Economics.

"It seems to me that it would be better to just counter like with like, that is put a 25 per cent tariff on whatever goods you decided … you want to target," he said, adding such a move would raise revenue for the B.C. government.

"Just putting a blanket ban on sales actually doesn't do anything except make the sellers in the red states very, very upset," Devereux said.

Roscoe said the outright prohibition on American alcohol by other provinces and territories would likely have a stronger retaliatory impact than B.C.'s "red state" ban.

But Canadians themselves are responding to the tariffs and Trump's talk of making Canada the 51st state by avoiding U.S. products in general, he said.

"So even if they don't go ahead, if the B.C. government doesn't have a blanket ban, I think the American alcohol firms are going to get damaged anyway just because of the buy-Canadian movement, which seems to really be gaining steam."

Asked if B.C. should worry about damaging relationships with neighbouring "blue" Democratic states in the event of an outright ban on American alcohol, Roscoe said the damage had already been done by Trump.

"I don't really think Canadians are considering the relationships with, you know, the more sort of left-leaning states of California and Washington and Oregon.

"I think we're upset at the Trump administration in general," he said.

 

MORE National ARTICLES

Trump's appointees have criticized Trudeau, warned of border issues with Canada

Trump's appointees have criticized Trudeau, warned of border issues with Canada
Donald Trump's second administration is filling up with some of his most loyal supporters and many of the people landing top jobs have been critical of Prime Minister Justin Trudeau and security at Canada's border. One expert says there are not many Canadian allies, so far, in the president-elect's court.

Trump's appointees have criticized Trudeau, warned of border issues with Canada

RCMP say three men arrested in B.C. have ties to Mexican drug cartels

RCMP say three men arrested in B.C. have ties to Mexican drug cartels
RCMP federal investigators have arrested three men in British Columbia they believe are connected to a transnational organized crime group connected to Mexican drug cartels bringing cocaine into Canada. They say officers also seized 23 firearms, several thousand rounds of ammunition and "multi-kilos of illicit drugs" from a home in Surrey, B.C.

RCMP say three men arrested in B.C. have ties to Mexican drug cartels

3 charged in a drug operation in Richmond

3 charged in a drug operation in Richmond
Police in Metro Vancouver say three people have been charged after a multi-year investigation into an alleged drug trafficking operation in Richmond. R-C-M-P say the probe began in November 2021, and searches at multiple properties in that city, as well as Vancouver, turned up some 15-hundred tablets of alleged M-D-M-A as well as 3.6 kilograms of methamphetamine.

3 charged in a drug operation in Richmond

Report details anti-Black racism in the public service, calls for commissioner

Report details anti-Black racism in the public service, calls for commissioner
A government-funded report says Black executives within the public service are subjected to harassment and intimidation, career stagnation, unjust workloads and, as one executive wrote, a "cesspool of racism." Lawyer Rachel Zellars, who authored the report for the Black Executives Network, wrote that the interviews she conducted with 73 participants were the "most distressing" she has witnessed and recorded. Of the 73 people she interviewed, 63 are current employees.

Report details anti-Black racism in the public service, calls for commissioner

Feds launching research institute for AI safety

Feds launching research institute for AI safety
The federal government is opening a research centre that will study the dangers posed by artificial intelligence technology. Industry Minister François-Philippe Champagne announced the launch of the Canadian Artificial Intelligence Safety Institute in Montreal on Tuesday. He said the centre will be important for building public trust in artificial intelligence technology.

Feds launching research institute for AI safety

2 dozen tires slashed in Nanaimo

2 dozen tires slashed in Nanaimo
A man has been arrested in connection to dozens of tires being slashed overnight in two Nanaimo parking lots. R-C-M-P say officers located 20 vehicles with their tires slashed in a parking lot in the 200 block of Franklyn Street, while another three vehicles with slashed tires were found a short time later in the 300 block of Selby Street.

2 dozen tires slashed in Nanaimo