American alcohol will disappear from liquor store shelves in Ontario and B.C. as the provinces add their own ammunition to a federal plan aimed at getting the U.S. to back down from tariffs.
Ontario Premier Doug Ford announced Sunday morning that he would take aim at the nearly $1 billion worth of U.S. wine, beer, spirits and seltzers sold in the LCBO every year.
The products are due to leave the liquor store on Tuesday, when U.S. President Donald Trump’s promised tariffs on Canadian goods come into effect.
“There’s never been a better time to choose an amazing Ontario-made or Canadian-made product,” Ford said in a statement.
His announcement followed a decision late Saturday from British Columbia Premier David Eby to direct the BC Liquor Distribution Branch to immediately stop buying American liquor from “red states” and pull existing stock from store shelves.
“It’s a declaration of economic war against a trusted ally and friend,” said Eby at a Vancouver press conference.
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The moves position alcohol as a key battleground in the trade feud that intensified Saturday when Trump signed an executive order applying 25 percent tariffs on Canada goods starting Tuesday. He carved out an exception for Canadian energy, which will see a lower 10 percent duty.
Trump has framed the tariffs as his way of tackling his concerns about security at American borders, including the flow of fentanyl.
Canada fired back against Trump’s assertions and the tariffs with its own retaliatory package announced by Prime Minister Justin Trudeau on Saturday night.
The package begins with Canada targeting $30 billion in U.S goods on Tuesday, followed by $125 billion in duties on American products in 21 days.
Trudeau has said American beer, wine, bourbon, fruits and fruit juices, vegetables, perfume, clothing and shoes will be part of the package.
Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, said she saw Ford’s move as a particularly helpful way to ensure Canada’s retaliatory measures pack a punch.
Canada does not export any significant amount of wine into the U.S., but Canada is the largest market for American wine, she said.
“Mr. Trump can’t hurt the Canadian wine industry in the same way that Canada can hurt the U.S. wine industry,” she said.
“From a trade perspective, there really is an imbalance and it hurts them more than it hurts us when we remove their products.”
It is not the first time Canada has used alcohol to make a point with the U.S.
When Trump was last president, he imposed tariffs of 25 percent on imports of Canadian steel and 10 percent on aluminum.
Canada retaliated with 10 percent duties on its own basket of goods, including American whiskies and bourbon.
Wasylyshen hopes pulling U.S. drinks from shelves will prompt Canadians to support homegrown businesses.
“It’s a stressful time for many companies, I understand that, but for us, it’s definitely an opportunity and we’re looking forward to taking advantage of it,” she said.
