Thursday, July 9, 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

B.C. couple partially victorious in bankruptcy fight with securities regulator

B.C. couple partially victorious in bankruptcy fight with securities regulator
The case involved a B.C. couple, Thalbinder Singh Poonian and Shailu Poonian, who were ordered by the British Columbia Securities Commission to pay $13.5 million in administrative penalties and $5.6 million to repay those who lost money in a market manipulation scheme that "caused vulnerable investors to lose millions of dollars."

B.C. couple partially victorious in bankruptcy fight with securities regulator

'Not out of the woods': Jasper wildfire still out of control, hotter weather expected

'Not out of the woods': Jasper wildfire still out of control, hotter weather expected
A fire rampaging through Jasper National Park remained out of control Wednesday, while officials worked to restore power and water in the park's townsite and to hash out a plan for vacationers to retrieve their stranded camping trailers.

'Not out of the woods': Jasper wildfire still out of control, hotter weather expected

Landslide sets off evacuation order for those living along B.C.'s Chilcotin River

Landslide sets off evacuation order for those living along B.C.'s Chilcotin River
A landslide blocking a river in British Columbia's central Interior has injured a man and prompted the Cariboo Regional District to issue evacuation orders due to "immediate danger to life and safety" caused by flooding triggered by the slide. The two evacuation orders span 107 square kilometres along the Chilcotin River southwest of the City of Williams Lake.

Landslide sets off evacuation order for those living along B.C.'s Chilcotin River

Triple stabbings in Vancouver

Triple stabbings in Vancouver
Police say a 29-year-old man has been charged in relation to a series of stabbings in downtown Vancouver last week. Officers responded last Monday night to reports that a man in his early 30s had been stabbed in the back, followed by two more stabbings in the same area.

Triple stabbings in Vancouver

Coast Guard to end staffing at two B.C. lighthouses, following safety concerns

Coast Guard to end staffing at two B.C. lighthouses, following safety concerns
Fisheries and Oceans Canada says "aids to navigation" will continue operating at both the Carmanah Point and Pachena Point light stations located along the Vancouver Island coast that's also home to the famed West Coast Trail. The light keepers will move out of the buildings before winter weather arrives.

Coast Guard to end staffing at two B.C. lighthouses, following safety concerns

Opposition BC United party looks to add former Liberal party name to election ballot

Opposition BC United party looks to add former Liberal party name to election ballot
BC United communications director Adam Wilson says the party is preparing to formally apply to Elections BC to have a phrase acknowledging that it was formally known as the B.C. Liberals included on the ballot for the election this fall. 

Opposition BC United party looks to add former Liberal party name to election ballot