Bourbon goes off shelves in US as Canada fights Trump's tariff threats

US bourbon goes off the shelves in Canada! But this American whiskey is just one of the many products that Canada is pulling back as it retaliates against US President Donald Trump’s trade tariffs.

 

How Canada is fighting trade tariff threats

 

Canadian pizzeria Gram’s Pizza has decided to boycott US-made products after Trump slapped 25 per cent tariffs on Canada and threatened to annex the country and make it the 51st state of the US. According to a Guardian report, Gram’s Pizza chef has decided to make changes in the way he makes pizza. For instance, after banishing ingredients from the US, he is now relying on Ontario-sourced grain for his pizza flour and looking for Canadian suppliers for his cheese demand. Instead of using Californian tomatoes, he is now relying on canned tomatoes sourced from Italy.

 

 

Many stores in Canada are now drawing the line between US and Canadian-made goods as they label the items. However, it is not as easy as it looks. The Guardian report suggested “those attempting to impose a full boycott of consumer goods have been caught off-guard at grocery stores where ‘Made in Canada’ products might contain some US ingredients”.

 

Along with the changes that Gram’s Pizza is making, restaurants and bars have decided to remove US-made drinks, including alcohol from their shelves. The Liquor Control Board of Ontario (LCBO) has ordered an immediate ban on the sale and purchase of US beverage products, another news report suggested. It stated, “In response to the US government’s imposition of tariffs on Canadian goods, the Ontario government has directed the LCBO to immediately stop the purchase of all US products and to remove all US products from LCBO retail channels and shelves, including spirits, wine, beer and ready-to-drink and non-alcoholic products.”

 

LCBO’s ban is likely to impact nearly 3,600 US beverage products across 35 states, the report mentioned. The Guardian quoted a poll by the Angus Reid Institute, which indicates that ever since Trump revived his threat of trade tariffs, four in five Canadians are now buying more Canadian products.

 

List of US products to be impacted 

According to a CTV news report, Ontario announced a ‘sweeping ban’ on US-based companies participating in government procurement. Ontario Premier Doug Ford said that the Canadian agencies spend nearly $30 billion yearly on procurement.

 

Elaborating on the procurement crackdown, Ford noted that Ontario is cancelling its $100 million contract with Starlink, the satellite internet service operated by tech billionaire Elon Musk’s SpaceX.

 

Canada is also likely to impose a 25 per cent tariff on electricity exports to the US. “We need to be ready to dig into a long fight. That includes surcharges or even outright restrictions on the critical minerals and electricity we supply to the United States,” Ford said.

 

The only thing that’s certain today is more uncertainty. A pause on some tariffs means nothing. Until President Trump removes the threat of tariffs for good, we will be relentless. pic.twitter.com/FuHGPWoHmh

— Doug Ford (@fordnation) March 6, 2025

 

US response to Canada 

Ontario’s decision to ban American bourbon will be felt majorly in US Kentucky, which exports over $9.3 billion worth of products to Canada annually. Major bourbon producers include Brown-Forman, Beam Suntory, Heaven Hill, and Diageo. According to a report, the bourbon producers expect significant financial consequences, given that Brown-Forman alone derives 55 per cent of its net sales from international markets.

 

Amid this tariff ban, US lawmakers are also condemning the trade tariffs, including Representative Morgan McGarvey who said, “Kentucky’s signature bourbon industry continues to be caught in the crossfire of Donald Trump’s broad, reckless tariffs. Canada is Kentucky’s largest trade partner and these tariffs will devastate our state’s economy while making everything more expensive.”

 

Background of the tariff war 

These changes come amid Trump’s decision to slap a 25 per cent tariff on Canada and Mexico, which came into effect on March 4. However, soon after Trump’s announcement, Canada announced its retaliatory tariffs, uniting a majority of Canadians to fight the trade war.

 

However, on March 6, the Trump administration announced its decision to put a pause on some of the imports from Canada and Mexico till April 2.

 

Ever since US President Donald Trump returned for his second term, he vowed to impose tariffs on Canada and Mexico, to improve border security. Trump believes that the other countries have been charging high tariffs and calling them ‘unfair’, he has now announced to impose reciprocal tariffs on all the countries, starting April 2.