As Trump doubles down on tariffs, Canadian distillers see a glass half full
Canadian provinces are maintaining a boycott of American alcohol products in response to new 50% tariffs imposed by the Trump administration. While the trade spat has hurt US liquor exports, it has simultaneously boosted sales for local Canadian distilleries and fostered a sense of national economic unity.
Why it matters
This trade conflict highlights the real-world economic consequences of protectionist policies and the potential for localized consumer shifts in response to international trade wars.
Way back in the distant past of March 2025, at the beginning of the trade spat between Canada and the US, you might remember that Canadian liquor stores in most provinces pulled American products en masse from shelves in response to US tariffs. US President Donald Trump certainly remembers. The boycott was back in the news last week when his administration imposed new 50% tariffs on Canadian goods. In announcing the duties, the White House said that the boycotts amounted to “unreasonable and unequal impositions and discriminations” against US alcohol producers. Most Canadian provinces sell alcohol through government-owned retailers, similar to ABC stores in the United States. Most provincial leaders have said they won’t back down on the boycott. “There’s not a chance in hell that US alcohol is going back on the shelf in British Columbia,” said British Columbia Premier David Eby last week.
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