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

Man charged after three-year-old struck and killed in Edmonton crosswalk

Man charged after three-year-old struck and killed in Edmonton crosswalk
A man is facing charges after a three-year-old boy was killed in Edmonton when a pickup truck hit him along with his mother and sister. The crash happened in the southwest neighbourhood of Allard on June 27.

Man charged after three-year-old struck and killed in Edmonton crosswalk

Coast Guard fines owner $13,500 after failure to remove 'hazardous' vessel

Coast Guard fines owner $13,500 after failure to remove 'hazardous' vessel
A British Columbia boat owner has been fined $13,500 after failing to remove the partially sunken vessel from a bay along the coast of Vancouver Island. Fisheries and Oceans Canada says the owner was given a deadline last March to remove the 12-metre fishing vessel from the waters near Gold River on the west coast of Vancouver Island.

Coast Guard fines owner $13,500 after failure to remove 'hazardous' vessel

Mounties in Prince George issue warning over 'hit man' scam

Mounties in Prince George issue warning over 'hit man' scam
Police in British Columbia are warning the public about what they describe as a "hit man" scam. Prince George RCMP say the fraud scheme involves victims who receive texts or emails with threatening messages saying the sender is being sent to kill them. 

Mounties in Prince George issue warning over 'hit man' scam

Rotting food and closed highways a concern as Jasper evacuation nears second week

Rotting food and closed highways a concern as Jasper evacuation nears second week
Parks Canada says it realizes wildfire evacuees from Jasper worry about what rotting food will do to their homes and that others wonder when a critical highway through the national park will reopen, but it says the blaze continues to burn out of control and remains a threat to the town. A statement from the federal agency on Sunday said requests have poured in from people asking for help in retrieving important personal items or to remove food, fridges and freezers.

Rotting food and closed highways a concern as Jasper evacuation nears second week

Slocan region in Interior B.C. evacuated due to multiple wildfires

Slocan region in Interior B.C. evacuated due to multiple wildfires
The mayor of Slocan says the skies were filled with ominous thick smoke while she drove out of her community that's now under an evacuation order as wildfires burn on either side. Jessica Lunn says most of Slocan's approximately 370 residents had already left Sunday morning, as she and her family evacuated and firefighters set up sprinklers to protect structures and prepared to pump water from the nearby lake.

Slocan region in Interior B.C. evacuated due to multiple wildfires

Walmart closes after fire

Walmart closes after fire
A Walmart in East Vancouver has been closed after a fire that appears to have been deliberately set Saturday caused millions of dollars of damage. A Facebook post from the store on Grandview Highway says all employees and costumers are safe but calls the incident "shocking, dangerous and shameful."

Walmart closes after fire