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Pause on U.S. alcohol imports could hurt B.C. businesses: liquor licensees

Click to play video: 'Concerns about plan to pause U.S. alcohol sales'
Concerns about plan to pause U.S. alcohol sales
Premier David Eby has suggested pausing the sale of American liquor in B.C. as a possible response to tariffs threatened by Donald Trump. Jeff Guignard from the Alliance of Beverage Licensees says he has concerns about that idea.

If B.C. halts the import of U.S. alcohol in response to U.S. President Donald Trump’s tariffs on Canadian goods it would hurt businesses on both sides of the border, an advocate says.

Jeff Guignard with the Alliance of Beverage Licensees (ABLE BC) said that while it is feasible for B.C. to pause U.S. alcohol sales, it would have a huge effect.

“Every year, British Columbia brings in about $400 million of liquor products [from] the United States,” he said.

“So not only would producers in the U.S. have to replace that, which is, I think, why our premier musing about this would hit Americans where it hurts, but all the businesses here in B.C. that rely on those products for the customers, we would be injured as well.

“So I don’t know why anyone thinks it’s the right time to pick a trade war with your best friend and neighbour.”

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Canada is bracing for the impact of Trump’s threats to levy blanket tariffs of 25 per cent on all goods entering the U.S. from Canada and Mexico, with much being said about price hikes for certain consumer goods amid a trade war if the tariffs come into force.

B.C. Premier David Eby, along with other premiers, is calling on residents to buy local whenever and wherever possible.

When asked if there was a decision at the provincial level to respond to the proposed tariffs, Eby said B.C. Liquor Stores are one of the biggest purchasers of American alcohol products, second only to Ontario.

“And as a result, our decision not to purchase American alcohol definitely sends a message,” Eby said last week.

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“It is one of the things that could be on the table in response to these tariffs that are completely unjustified. They will hurt families here and in the United States. And using targeted tariffs, using non-tariff responses like refusing to buy American alcohol products, are absolutely on the table.”

The idea to make it easier to trade between provinces has also been floated as a possible next step.

“In B.C., we are blessed with a world-class, thriving winery, brewery and spirits sector,” Guignard said.

“So we’ll be able to replace some of those products domestically. And there has never been a better time to buy Canadian than right now. But as we adapt to this potential challenge with the United States, we definitely have to look at why is it easier to ship products down to the United States than it is sometimes to ship in our own country, in our own provinces.”

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Earlier this month, the B.C. government announced that wineries could again sell their products directly to Alberta consumers, months after an interprovincial deal was announced between the two provinces last summer.

The process allows Albertans to order wine from more than 300 B.C. wineries in exchange for the Alberta government getting its share of applicable taxes.

“As we end up in this dispute with our neighbours to the south, it’s important that we try and find ways to stimulate Canadian businesses and help them as much as we can,” Guignard said.

“I would love sanity to prevail and our politicians on both sides of the border realize that their decisions have real-world consequences that will impact workers and businesses and consumers on both sides of the border.”

Guignard said that while they won’t be able to replace all the products from the U.S. if the tariffs go ahead and B.C. responds by pausing wine sales, they will work to provide as many products as they can.

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“If the United States imposes tariffs, tariffs are just taxes and we’ll be increasing taxes on Canadian and American products,” he added.

“So to get more expensive for consumers and you’ll probably find some of the brands that you love won’t be on the shelves anymore.”

Click to play video: 'Does the B.C. premier have any indication of when Trump’s tariffs might be coming?'
Does the B.C. premier have any indication of when Trump’s tariffs might be coming?

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