U.S. Liquor Back on BC Liquor Store Shelves for Now as Trump Delays Tariffs on Canada
February 4, 2025
Trump Tariff Threat Spawns Grassroots Buy Canadian Campaign
February 9, 2025
Two days after President Trump slapped 25% tariffs on all goods from Canada and a 10% tariff on energy products, he paused the tariffs until March 1. The Canadian government had enacted retaliatory tariffs of $155 billion on U.S. goods coming into Canada. Canada’s retaliatory tariffs were paused in response to the one-month reprieve.
After a phone call on Monday, February 3, with Prime Minister Trudeau, in which the Canadian government made concessions, Trump paused the tariffs, which began February 1.
The Trump administration fact sheet on the tariffs, stated that tariffs are a response to the “extraordinary threat posed by illegal aliens and drugs, including fentanyl”. The number of illegal entries at the northern border in 2024, was 23,721, up 2,238 from 2022 – a small fraction compared to the 1.5 million encounters at the southern border with Mexico. Trump has also used fentanyl crossing in from Canada to the U.S. as a justification for tariffs. Just 43 pound of fentanyl was seized crossing the Canadian border into the U.S compared to close to 22,000 pounds seized at the southern border. (Source: “Fact check: Canada makes up just 0.2% of US border fentanyl seizures”, CNN, February 3, 2025).
To appease Trump and possibly sidestep tariffs, Canada will continue its border security plan, which will include helicopter patrols, and 10,000 new personnel. The Canadian government will also appoint a fentanyl “czar”. In addition to these measures, Prime Minister Trudeau announced the launch of joint Canada – U.S. task force on organized crime and money laundering. (Source: “Government of Canada expands plan to strengthen border security”, February 4, 2025.)
Canada’s Retaliatory Tariffs
The federal government implemented many counter-tariffs to pressure the U.S. into backing off on its tariff threat. Canada’s 25% tariffs on the U.S. ($155 billion worth of goods) includes an exhaustive list of products. In a “Team Canada” approach, most provinces have also implemented their own retaliatory response (Source: “Here are all the ways Canada is striking back against Trump’s tariffs”, CBC, February 2, 2025).
—
Tariffs will affect many BC businesses including our clients in the BC liquor industry. Thrive Liquor & Cannabis Advisors have our collective fingers crossed and will keep a close eye on this story and its developments.
