Canadian provinces refuse to lift U.S. alcohol bans despite tariff threats

Canadian provinces are standing firm against U.S. pressure to end alcohol boycotts, despite fresh tariff threats from the Trump administration. Ontario and British Columbia have refused to lift their bans on American wine and spirits sold in government-run stores, while Saskatchewan and Alberta allow U.S. liquor sales. The dispute escalated after the U.S. imposed a 50% tariff on selected Canadian imports, framed as reciprocity by Treasury Secretary Scott Bessent for what he called discriminatory Canadian trade practices, including restrictions on U.S. alcohol. Ontario Premier Doug Ford dismissed the tariff threat, calling it bullying and insisting the ban would only be lifted if the U.S. removed sectoral tariffs on autos and steel. British Columbia Premier David Eby was equally defiant, declaring there was “not a chance in hell” U.S. alcohol would return to provincial shelves. Prime Minister Mark Carney said any decision to lift the bans would be made individually by provinces, and only as part of a broader U.S.-Canada trade agreement. The alcohol boycotts, which began last year amid a wider trade war, have cost American producers millions in lost sales. While alcohol represents a small fraction of trade between the two countries, its visibility has made it a key bargaining chip for Canada. International trade lawyer Mark Warner argued the bans are legally questionable and unnecessary, suggesting that simply returning U.S. alcohol to shelves would likely result in minimal sales due to consumer preferences. The standoff underscores the tension in ongoing trade negotiations, with provinces resisting federal pressure to concede on the alcohol issue.