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Why Canada’s Booze Ban Is Such a Sore Point in Trade Talks

TORONTO—California Merlots, Kentucky bourbons and Tennessee whiskeys are collecting dust in Canada as alcohol becomes a high-profile hostage of trade tensions with the U.S.

After President Trump imposed tariffs on Canadian goods last year, Canada’s provincial leaders hit back. The majority of provinces exercised their power over the distribution and sale of alcohol to pull U.S.-made wine, spirits and beer from most store shelves and stopped placing new orders.

While alcohol accounts for a tiny portion of the nearly $900 billion in trade between Canada and the U.S., few aspects of Canada’s response to Trump’s economic aggression have gotten under the skin of U.S. officials—while drawing broad support from the Canadian public—quite like the booze bans.

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