Jul 22, 2026
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Add us on GoogleThe premier of the Canadian province of British Columbia isn’t giving into pressure from President Donald Trump to lift a ban on U.S. alcohol sales at government-run liquor stores. It comes after the president announced a new round of 50% tariffs on a range of Canadian goods.
“There is not a chance in hell that U.S. alcohol is going back on the shelf in British Columbia,” Premier David Eby said Tuesday at a meeting of Canadian premiers in Charlottetown, Prince Edward Island. “The idea of the president, that he can bully us into whatever he wishes, is incorrect.”
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In a presidential proclamation on Monday, Trump announced a sweeping new package of tariffs on nearly 500 Canadian products. The president accused Canada of “unreasonably” restricting U.S. alcoholic beverages, describing the country’s policies as “Canadian discrimination” against American commerce.
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In March 2025, all 10 Canadian provinces and three territories halted the purchase, distribution or retailing of U.S. alcoholic beverages in response to Trump’s tariffs. The ban was subsequently lifted in June 2025 by Alberta and Saskatchewan, but remains in place in all other regions.
Trump said Canadian imports of U.S. alcohol fell by roughly 81 per cent between March 2025 and February 2026 compared with the same period a year earlier.
Eby acknowledged the new tariffs will hurt families, but argued backing down will only encourage further pressure from Washington.
“The one way to embolden a bully is to capitulate. And I don’t think we should embolden Mr. Trump, who clearly is a bully,” Eby said.
Trump’s latest round of tariffs
The White House says the latest round of tariffs cover goods “ranging from wine to hockey sticks to cement.” More alcoholic beverages, including rum, vodka, brandy, tequila and whiskeys, have been included, as well as milk, cream and natural honey.
It also includes tariffs against the Canadian auto sector, in violation of the Canada-United States-Mexico Agreement (CUSMA) on trade. The agreement is meant to facilitate tariff-free trade between the nations, cutting costs for North American importers and exporters.
This marks the first time Trump has made it clear that goods under CUSMA will not be protected from his tariffs.
“This is the latest in a series of unilateral U.S. trade actions that began with the U.S. imposing a series of tariffs in direct violation of (The Canada-United States-Mexico Agreement),” Canadian Prime Minister Carney said in a statement released Monday. “These include tariffs on the Canadian auto sector, in violation of CUSMA. Canada, as is its right, has merely matched those measures.”
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The economic impact of Trump’s tariffs
Trump has claimed this latest round of tariffs “will make America wealthier and stronger” and “restore reciprocity to trade.” The president has argued tariffs will boost the U.S. economy, balance trade and create new jobs.
According to the Tax Foundation, Trump’s tariffs amounted to an average tax increase of $1,000 per household in 2025. The foundation estimates taxes will increase by $700 this year.
The Canadian Prime Minister says the ongoing trade dispute has already raised costs for families, “particularly in the U.S.” According to BMO senior economist Robert Kavcic, this latest round of tariffs would cover roughly $28 billion worth of annual Canadian exports to the U.S.
Canada plans to continue its fight
Ottawa is prepared to continue its fight against the tariffs — including by banning U.S. alcohol.
Manitoba Premier Wab Kinew echoed Eby’s sentiments. According to CTV News, the premier said he has no plan to lift the booze ban in his province, saying, “It’s clear that the booze bans are having an impact,” and that he plans on continuing to use it as leverage in this fight.
The tariffs are set to take effect on Aug. 19.
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Rinna Diamantakos is an assigning editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.
