25% Tariffs & Red State Liquor: The List of Retaliatory Measures by Canada & the Provinces

Buy Canadian is the message Prime Minister Justin Trudeau wanted to convey to Canadians as he announced retaliatory measures in response to the tariffs imposed by U.S. President Donald Trump.

 

Trudeau announced that Canada will levy 25% tariffs on $155 billion worth of American goods. The tariffs on $30 billion worth of American goods will begin on Tuesday, February 4. This list includes products such as milk, poultry, orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. The full list of items is available here.

The tariffs of $125 billion in goods will take effect in 21 days. Per the news release, a full list of these goods will be made available for a 21-day public comment period before implementation. This will include products such as passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats.

According to the news release, among the U.S.’s top five trading partners, Canada is the only country where the U.S. maintains a trade surplus in manufacturing, totaling $33 billion in 2023.

Measures Announced by Provinces:

 

British Columbia:

  • The BC Liquor Distribution Branch will immediately stop buying American liquor from “red states”, and remove the top-selling “red-state” brands from the shelves of public liquor stores.
  • The B.C. government and Crown corporations will buy Canadian goods and services first.

The Province is assessing private-sector projects worth $20 billion with the goal of getting them approved as quickly as possible, and issuing their permits faster. These are expected to create 6,000 jobs in remote and rural communities.

Premier Eby added that additional measures are under consideration by B.C. and could be introduced in the coming days and weeks.

Per the news release, B.C. could see a cumulative loss of $69 billion in economic activity between 2025 and 2028, along with the loss of more than 120,000 jobs. In 2023, 54% of British Columbia’s exports were shipped to the United States, according to a news release. Wood, pulp and paper, metallic minerals, and energy products accounted for 67% of total exports. The top five U.S. destinations were Washington ($9.8B), California ($3.2B), Illinois ($2.1B), Texas ($1.5B), and Oregon ($1.3B).

Nova Scotia:

Per the statement from Premier Tim Houston’s office:

  • Nova Scotia will limit access to provincial procurement for American businesses.
  • The Province will also look for opportunities to cancel existing contracts and will maintain the option to reject bids outright because of President Trump’s unlawful tariffs.
  • The cost of tolls at the Cobequid Pass will double for commercial vehicles from the United States, effective February 3, 2025.
  • The Nova Scotia Liquor Corporation will be directed to remove all alcohol from the United States from their shelves effective February 4, 2025.

Ontario:

Ontario’s Premier announced on Sunday via X that, starting Tuesday, the LCBO will remove American products from its shelves. As the province’s sole alcohol wholesaler, the LCBO will also eliminate U.S. products from its catalogue, preventing Ontario-based restaurants and retailers from ordering or restocking them.

On Monday, February 3, Doug Ford announced on X that Ontario is banning American companies from provincial contracts until U.S. tariffs are lifted. Ford further declared that Ontario will terminate its contract with Starlink, emphasizing that the province will not engage with companies that, in his words, are intent on harming its economy. “Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it,” he concluded.

Quebec:

Effective February 4, Quebec has directed Société des alcools du Québec (SAQ) to remove all American products from its shelves. This removal applies to wines, but also to all other alcoholic beverages currently sold in the Crown corporation’s branches and on its transactional site. The government is also asking the SAQ to stop supplying American alcoholic beverages to grocery stores, agencies, bars and restaurants.

Manitoba:

Premier Wab Kinew has directed Manitoba Liquor and Lotteries (MBLL) to stop the sale of American products in the province. Starting Tuesday, Feb. 4, MBLL will be instructed to remove American products from liquor mart shelves and halt orders for American alcohol, the premier announced.

Additionally, the premier stated that the province will introduce further support measures for Manitoba businesses and workers throughout the week in response to U.S. tariffs. Manitoba’s U.S. Trade Council is set to convene on Monday to assess the impact of the tariffs and discuss the province’s response.

Prince Edward Island:

All American wines, beer, and spirits will be removed from provincial liquor store shelves across the province by Tuesday. As the PEI Liquor Control Commission is the sole wholesaler for these products in Prince Edward Island, these products will be removed from the catalogue of products offered by the LCC which will mean that restaurants and agency stores can’t reorder or restock U.S. products.

PEI will also review its current procurement with U.S. companies and will, whenever possible, reduce commercial engagements with them. This includes cancelling existing contracts, restricting U.S. companies from bidding on or competing for provincial government contracts, and limiting future business dealings.

New Brunswick:

NB Liquor will stop purchasing and remove U.S. alcohol products, impacting $40 million in sales. The government will also review procurement policies and halt new contracts with U.S. companies, except for essential services that cannot be immediately replaced for New Brunswickers.

Transcript of Trudeau’s Speech:

 

Tonight, first, I want to speak directly to Americans, our closest friends and neighbours.

This is a choice that, yes, will harm Canadians, but beyond that, it will have real consequences for you, the American people, as I have consistently said, tariffs again against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities, they will raise costs for you, including food at the grocery stores and gas at the pump.

They will impede your access to an affordable supply of vital goods crucial for us, security such as nickel, potash, uranium, steel and aluminum, they will violate the free trade agreement that the President and I, along with our Mexican partner, negotiated and signed a few years ago. But it doesn’t have to be this way, as President John F Kennedy said many years ago, geography has made us neighbours. History has made us friends. Economics has made us partners, and necessity has made us allies.

 

That rang true for many decades prior to President Kennedy’s time in office and in the decades since, from the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours during the Iranian hostage crisis, those 444 days, we worked around the clock from our embassy to get your innocent compatriots home during the summer of 2005 when Hurricane Katrina ravaged your great city of New Orleans, or mere weeks ago, when we sent water bombers to tackle the wildfires in California and during the day, the world stood still, September 11, 2001 when we provided refuge to stranded passengers and planes, we were always there standing with you, grieving with you, the American people, together, we’ve built the most successful economic, military and security partnership the world has ever seen, a relationship that has been the envy of the world.

Yes, we’ve had our differences in the past, but we’ve always found a way to get past them. As I’ve said before, if President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us.

Canada has critical minerals, reliable and affordable energy, stable, democratic institutions, shared values and the natural resources you need. Canada has the ingredients necessary to build a booming and secure partnership for the North American economy and we stand at the ready to work together.

Let’s take a moment to talk about our shared border. Our border is already safe and secure, but there’s always, always more work to do. Less than 1 per cent of fentanyl, less than 1 per cent of illegal crossings into the United States come from Canada.

But hearing concerns from both Canadians and Americans, including the American President himself, we’re taking action. We launched a $1.3 billion border plan that is already showing results, because we too are devastated by the scourge that is fentanyl, a drug that has torn apart communities and caused so much pain and torment for countless families across Canada, just like in the United States, a drug that we too want to see wiped from the face of this earth, a drug whose traffickers must be punished as neighbors, we must work collaboratively to fix this.

Unfortunately, the actions taken today by the White House split us apart instead of bringing us together.

Tonight, I am announcing Canada will be responding to the US trade action with 25% tariffs against $155 billion worth of American goods. This will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days time to allow Canadian companies and supply chains to seek to find alternatives.

Our response will also be far reaching and include everyday items such as American beer, wine and bourbon, fruits and fruit juices, including Orange Juice, along with vegetables, perfume, clothing and shoes, it’ll include major consumer products like household appliances, furniture and sports equipment and materials like lumber and plastics, along with much, much more.

And as part of our response, we are considering with the provinces and territories, several non tariff measures, including some relating to critical minerals, energy procurement and other partnerships. We will stand strong for Canada. We will stand strong to ensure our countries continue to be the best neighbours in the world.

With all that said, I also want to speak directly to Canadians in this moment. I’m sure many of you are anxious, but I want you to know we are all in this together, the Canadian government, Canadian businesses, Canadian organized labor, Canadian civil society. Canada’s premiers and tens of millions of Canadians from coast to coast to coast are united. This is Team Canada at its best.

I spoke with the President of Mexico. We committed to work together to face them down.

 

I have something to ask Canadians, to be in solidarity together. I ask you to be here for each other.

Now is also the time to choose Canada. There are many ways for you to do your part. It might mean checking the labels at the supermarket and picking Canadian made products. It might mean opting for Canadian rye over Kentucky bourbon, or foregoing Florida orange juice altogether. It might mean changing your summer vacation plans to stay here in Canada and explore the many national provincial parks, historical sites and tourist destinations our great country has to offer.

Support our manufacturers, our workers, entrepreneurs and artists. It might mean doing all of these things, or finding your own way to stand up for Canada in this moment, we must pull together, because we love this country.

We pride ourselves on braving the cold during the long winter months. We don’t like to beat our chests, but we’re always out there waving the maple leaf loudly and proudly to celebrate an Olympic gold medal city.

Canada is home to bountiful resources, breathtaking beauty, the proud people who’ve come from every corner of the globe to forge a nation with a unique identity, with embracing and celebrating.

We don’t pretend to be perfect, but Canada is the best country on Earth.

There’s nowhere else that I and our 41 million-strong family would rather be, and we will get through this challenge just as we’ve been done countless times before, together.

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