In a recent post-earnings call, Whiting expressed grave concerns over the economic impact of new tariffs, stating, “It’s literally taking your sales away. Completely removing these — our products — from the shelves, that’s a very disproportionate response to a 25 percent tariff.” This statement highlights the growing tensions between the United States and Canada, particularly in light of Canadian Prime Minister Justin Trudeau's recent decision to impose retaliatory tariffs.
On Monday, Trudeau announced a substantial 25 percent tariff on approximately $107 billion worth of U.S. products. This immediate action affects around $21 billion worth of goods, including popular items such as beer, wine, and spirits. The remaining tariffs are set to take effect within three weeks, signaling a significant shift in trade relations.
The situation worsened as President Trump suggested that Canada should consider becoming the 51st U.S. state, a comment that has further angered Canadians. In response, several Canadian provinces are taking a stand. Notably, Manitoba Premier Wab Kinew shared a video on Instagram showcasing an order to remove U.S. alcohol from government-run stores. “This order, it’s a wonderful order, it’s a beautiful order,” Kinew stated in the clip, mimicking Trump’s tone, which quickly garnered over 6 million views and thousands of comments.
The public reaction has been mixed. One top comment on Kinew’s video read, “I’m an American and I approve of this message,” while another user criticized the action as “performative but not effective.” The implications of these tariffs extend beyond public sentiment; last year, the United States exported over $300 million worth of spirits to Canada, while importing $771 million worth from Canada, according to Trading Economics.
Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, emphasized the need for collaboration between the U.S. and Canada, stating, “For decades, there have been zero for zero tariffs on spirits trade between the U.S. and Canada. We urge the U.S. and Canada to work together to reach an agreement that continues to foster a thriving spirits industry between our two countries.” The interconnected nature of the North American alcohol industry means that tariffs on products like tequila and Canadian whisky will adversely affect U.S. companies that include these liquors in their brand portfolios.
The association estimates that the introduction of 25 percent tariffs on imports of distilled spirits from Mexico and Canada could lead to the loss of more than 31,000 jobs in the U.S. economy. In addition to Manitoba, at least five other Canadian provinces — Ontario, Nova Scotia, British Columbia, New Brunswick, and Newfoundland and Labrador — have initiated similar actions against American alcohol imports.
Ontario’s liquor board has reported that it stocks over 3,600 alcohol products from 35 American states, making it a key market for Kentucky bourbon. Premier Doug Ford remarked, “They’re done, they’re gone,” referring to the impact of the tariffs on bourbon, a $9 billion industry in Kentucky that supports over 23,000 jobs. The economic ramifications of these tariffs are significant, with Kentucky’s Democratic governor, Andy Beshear, opposing Trump’s tariffs and highlighting the potential hardships they will bring to local workers.
In a related note, on Wednesday, automakers received a temporary reprieve from Trump, who agreed to a one-month pause on tariffs affecting certain automobile imports from Canada and Mexico. This decision followed discussions with executives from major companies including General Motors, Ford, and Stellantis, who sought relief from the economic strain caused by the ongoing trade disputes.
