One by one, the bottles of Kentucky bourbon were pulled from the shelf of a Vancouver liquor store. In their place, a large sign: “Buy Canadian instead.”
The move, aimed at states with Republican governors, marked an early salvo in a looming trade war between the US and Canada.
“We have targeted red states because, quite frankly, Donald Trump doesn’t care about Democrat states,” British Columbia’s housing minister, Ravi Kahlon, told reporters. “We want to make sure that we’re not punishing states that have nothing to do with this.”
Over the weekend, the US announced sweeping tariffs on Canada, one of its largest trading partners and political allies. And in a speech lauded across the political aisle in Canada, outgoing prime minister Justin Trudeau said his government would do everything to salvage a bilateral relationship he called “the envy of the world” but said the American taxes, in breach of the continent’s free trade agreement, would be met with a “far-reaching” economic and political response.
“We have fought and died alongside you,” Trudeau said to Americans in his televised address. “During your darkest hours … we were always there, standing with you, grieving with you, the American people.”
On Monday evening, Trudeau announced Trump’s 30-day pause to the tariffs on Canadian goods after a phone call the US president said went “very well”.
In addition to the C$1.3bn ($0.9bn) pledged to increase border security, the Canadian prime minister said he would appoint a “fentanyl tsar” to address Trump’s concern about drugs – a small amount of which come from Canada.
“We will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-US joint strike force to combat organized crime, fentanyl and money laundering,” Trudeau posted on X. “I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
Still, the looming trade war has fractured a long relationship between the two allies and prompted a rare national unity in Canada.
Hats emblazoned with the slogan “Canada Is Not For Sale” have become a viral sensation with tens of thousands sold. On social media, people began using the term ‘Vichy Canadians’ to refer to commentators who appeared sympathetic to demands from the temperamental and unpredictable US president. Others shared an editorial from the conservative American newspaper the Wall Street Journal describing the spat as the “dumbest trade war in history”.
Canadian officials had said on Sunday that a 25% retaliatory tariff would apply to 1,200 categories of American imports on Tuesday, including orange juice and motorcycles. More goods would be taxed later in the month.
“It’s remarkable to find ourselves at odds with our best friend and neighbour,” Nova Scotia’s premier, Tim Houston, wrote on social media, announcing tolls for commercial vehicles with American licence plates would double on Tuesday.
In Ontario, Canada’s most populous province, the Liquor Control Board of Ontario (LCBO) had said it would stop stocking US-made products and also prohibit Ontario-based restaurants and businesses from restocking and ordering American spirits, beers and wines.
But, as one store manager pointed out, singling out Canadian brands to promote is harder than it seems.
“Pretty much all of the beer, including Budweiser and Coors will stay on the shelf. They’re bottled and made here in Canada. And Molson Canadian merged with the American company Coors in 2005,” he said, holding a printout of the permissible and barred brands. The only beers set to come are a small-batch Hawaii beer and a gluten-free one.
Instead, rows of California wines are set to disappear from the shelves, as are popular bourbons.
“Uncertainty is the currency of the guy down south in the White House,” he said. “We don’t know what’s going to happen. We’re in hurry up and wait mode. But I can say from a retail perspective, the result will be pretty significant if we have to pull stuff. And we’ve got staff ready to go if word comes in that no deal has been reached and it’s time to retaliate.”
On Monday, the province’s premier, Doug Ford, escalated pressure, announcing his government would tear up a C$100m contract with Starlink, the telecommunications company owned by billionaire Elon Musk, a closeTrump ally.
“Ontario won’t do business with people hellbent on destroying our economy,” Ford said in the statement. “Canada didn’t start this fight with the US, but you better believe we’re ready to win it.”
Trump has long alleged that Canada has failed to do enough to stop the flow of “illegal migrants” and fentanyl into the US, while also musing over how he might annex Canada, claims he revived over the weekend in a series of social media posts.
“This is a colossal act of self-mutilation. America is hurting itself,” Chrystia Freeland, the former finance minister and Liberal leadership candidate, told MSNBC, suggesting the tariffs were put in place for the “flimsiest” reason. “We think it is utterly crazy. And we’re also really, really angry at you.”
