Tuesday, July 7, 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

Jasper wildfire evacuees can start returning to townsite on Friday

Jasper wildfire evacuees can start returning to townsite on Friday
People who live in Jasper, Alta., will be allowed to return to the community on Friday, but wildfire officials say they should not expect to spend the night in their homes. Town incident commander Christine Nadon told reporters it's a blanket re-entry to allow everyone to come back at once. 

Jasper wildfire evacuees can start returning to townsite on Friday

CBC paid over $18 million in bonuses in 2024 after it eliminated hundreds of jobs

CBC paid over $18 million in bonuses in 2024 after it eliminated hundreds of jobs
The Canadian Broadcasting Corp. paid $18.4 million in bonuses this year after hundreds of jobs at the public broadcaster were eliminated. Documents obtained through access to information laws show CBC/Radio-Canada paid out bonuses to 1,194 employees for the 2023-24 fiscal year.

CBC paid over $18 million in bonuses in 2024 after it eliminated hundreds of jobs

Thrift store in B.C. closed after historical explosive device was dropped off

Thrift store in B.C. closed after historical explosive device was dropped off
Experts from the navy were dispatched to a Vancouver Island thrift store to deal with what police are calling a "historical military explosive device."  Mounties from the Sidney North Saanich detachment say employees from the store in Sidney, B.C., called them around 2:30 p.m. Saturday, reporting the device being dropped off there. 

Thrift store in B.C. closed after historical explosive device was dropped off

Cannabis oils and softgels recalled due to intoxicating ingredients: Heath Canada

Cannabis oils and softgels recalled due to intoxicating ingredients: Heath Canada
Health Canada has announced a recall of several cannabis oils and softgels because they may contain unexpected amounts of THC and HHC. The agency says both ingredients are intoxicants and could pose a danger to consumers. 

Cannabis oils and softgels recalled due to intoxicating ingredients: Heath Canada

Worker killed by two polar bears

Worker killed by two polar bears
A worker has died after being attacked by two polar bears off the eastern coast of Baffin Island in Nunavut. The Nasittuq Corporation says in a statement that employees responded to the attack Thursday at its work site on Brevoort Island.

Worker killed by two polar bears

Langley RCMP officer hit by vehicle

Langley RCMP officer hit by vehicle
Police in Langley say one of their officers has been taken to hospital after being struck by a vehicle whose driver fled the scene. RCMP say an officer was conducting traffic enforcement when the crash occurred on Friday.

Langley RCMP officer hit by vehicle