Stocks have fallen, chaos ensues, and retaliation is only to be expected—this has become the reality following Trump’s newest executive order, announced Monday, March 4. After months of threats, the American president signed an executive order placing 25% tariffs on all trade from Mexico and Canada. On Thursday, the administration announced that both Canada and Mexico had been allowed a reprieve on tariffs compliant with the CUSMA (Canada-U.S.-Mexico Agreement) until April 2. Unfortunately, the Associated Press found that this will only apply to 38% of trade imports in Canada, leaving the country still facing steep tariffs in the continuing trade war.
In response, British Columbia is one of a few provinces to fight back in a seemingly odd but highly effective way: pulling American liquor off shelves.
Joining Ontario and Nova Scotia, B.C. Premier David Eby announced that the province liquor distribution branch had been directed to immediately stop purchasing “red-state” liquor from Republican-led states. Within the day, videos of employees pulling the banned liquor off shelves hit news sources worldwide.
The impacted products are the top-five selling brands specifically manufactured in Republican-led states, which are: Tito’s Vodka, Jack Daniels, Bacardi Rum, Jim Beam, and Bulleit Bourbon. These brands will not be allowed for individual purchase, nor will they be able to be bought wholesale or by hospitality customers.
The message from Canada is clear, as stated by Eby:
“We understand who’s attacking us, we understand where this is coming from, and we want to send a message particularly to those governors, to those Congresspeople when they hear from their constituents about this. They have a chance to stand up to the president and point out that jobs in their communities are dependent on a good relationship with Canada.”
B.C. Premier, David Eby
The CEO of Jim Beam, Lawson Whiting, reacted to the move by saying on a post-earnings call, “I mean, that’s worse than a tariff, because it’s literally taking your sales away, (and) completely removing our products from the shelves.” With red-state liquor companies already reacting to the move, more threats are surfacing in retaliation from both sides.
Businesses both domestic and worldwide have expressed concern about significant damage to both companies and consumers, but neither government has shown signs of relenting. Both Canadians and Americans should expect further changes to products on shelves and availability in the markets with these changing political tides.