Thursday, February 5, 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

Environment Canada cautions of frostbite as frigid temperatures linger in B.C.

Environment Canada cautions of frostbite as frigid temperatures linger in B.C.
Environment Canada is warning that frostbite and hypothermia that can occur within minutes as frigid conditions linger over much of British Columbia.  Extreme cold and arctic outflow warnings are in place for much of the interior as well as the north and central coasts and the agency is suggesting people limit outdoor activities and ensure pets and outdoor animals are sheltered.

Environment Canada cautions of frostbite as frigid temperatures linger in B.C.

New wrongful conviction review body could see hundreds of applications

New wrongful conviction review body could see hundreds of applications
A new independent commission tasked by the federal government with reviewing miscarriages of justice could discover that more people than expected are serving prison sentences for crimes they didn’t commit. Other countries that launched similar commissions have found that "the degree of wrongful convictions certainly was much more significant than they knew," said Sen. Kim Pate, a prominent advocate for the wrongfully convicted.

New wrongful conviction review body could see hundreds of applications

'A madness in the air.' Trump's threats unleash patriotic wave among Canadians

'A madness in the air.' Trump's threats unleash patriotic wave among Canadians
McGill University undergrad Daniel Miksha made a significant decision over the weekend. After hearing the news that U.S. President Donald Trump planned to impose 25 per cent tariffs on Canadian exports, Miksha shelved his plans to apply to Boston University, Yale and Harvard for graduate studies.

'A madness in the air.' Trump's threats unleash patriotic wave among Canadians

Poilievre would impose life sentences for trafficking over 40 mg of fentanyl

Poilievre would impose life sentences for trafficking over 40 mg of fentanyl
Pierre Poilievre says a Conservative government would bring in mandatory life sentences for those convicted of trafficking, production and distribution of over 40 mg of fentanyl. The Conservative leader said early Wednesday the penalty should be the same as murder.

Poilievre would impose life sentences for trafficking over 40 mg of fentanyl

Prime Minister Trudeau will host a Canada-U.S. summit amid threat of Trump tariffs

Prime Minister Trudeau will host a Canada-U.S. summit amid threat of Trump tariffs
Prime Minister Justin Trudeau will host a Canada-U.S. economic summit in Toronto on Friday, days after President Donald Trump said he would hold off on his threatened tariffs against Canada for a month. The Prime Minister's Office says the event will assemble Canadian trade and business leaders, along with organized labour, to discuss strategies to grow the economy, break down internal trade barriers and diversify exports.

Prime Minister Trudeau will host a Canada-U.S. summit amid threat of Trump tariffs

Trade surplus with U.S. widened in December but down overall in 2024: StatCan

Trade surplus with U.S. widened in December but down overall in 2024: StatCan
Canada's trade surplus with the U.S. widened in December as overall exports rose thanks in part to higher energy prices, Statistics Canada said Wednesday. The global trade surplus in goods came in at $708 million for the month, compared with a revised deficit of $986 million in November, to mark the first merchandise trade surplus since February 2024.

Trade surplus with U.S. widened in December but down overall in 2024: StatCan