Economy

Trump tariffs: The first three products from Canada that will no longer be exported to the U.S.

Trump’s announced tariffs on Canadian products have been paused but they prompted boycotts of U.S. products and a threat to stop certain exports to the U.S.

Leon Neal

María Dávila Greg Heilman

Update: Feb 5th, 2025 18:52 EST

The long-standing trade relationship between Canada and the United States is facing a fresh wave of uncertainty following Donald Trump’s return to power. His administration’s new tariff policies have already caused ripple effects, leading to the disappearance of certain American products from Canadian shelves—particularly alcoholic beverages and goods originating from Republican-controlled states.

Canadian provinces retaliate with product bans

In direct response to the 25% tariffs announced by the U.S. on Canadian goods, Ontario took a bold step. The provincial government ordered the Liquor Control Board of Ontario (LCBO) to halt sales of all alcoholic beverages imported from the United States.

“Wholesale customers, including grocery and convenience stores, bars, restaurants, and other retailers, will no longer be able to place orders of U.S. products,” the LCBO said in a statement. This decision affected wine, beer, and spirits—products that generate approximately 1 billion Canadian dollars in annual sales across the province.

Meanwhile, British Columbia has implemented a more targeted approach, removing alcoholic beverages specifically produced in Republican-led U.S. states. This trend is quickly spreading, with provinces such as Nova Scotia, Quebec, Newfoundland, and Labrador also joined the movement to boycott American products. The coordinated response signals a unified stand against Trump’s protectionist policies.

The boycotts have been put on hold after Prime Minister Justin Trudeau announced on Monday that tariffs on Canada have been delayed for 30 days. It will now be up to establishments, who have until March 1 to decide if they want to stop selling American-made alcoholic beverages while the simmering trade war is on pause.

Trump’s justification: economic security and border control

President Trump has defended the new tariffs as a necessary measure to protect American interests, citing concerns over illegal immigration and drug trafficking. His administration is leveraging the International Emergency Economic Powers Act (IEEPA) to enforce these trade restrictions without requiring prior investigations or congressional approval.

Canada strikes back with countermeasures

Labeling Washington’s decision as an “act of trade aggression,” Canadian Prime Minister Justin Trudeau announced retaliatory tariffs of 25% on select U.S. imports. These countermeasures would have had major repercussions in key sectors, and still could if tariffs are reimposed, particularly energy, oil, and food industries, escalating the ongoing trade dispute.

🇨🇦 @JonathanWNV: 36 US states rely on Canada as their number one export market.

But there is no area where the integrated nature of our economies is clearer than in energy and critical minerals, he adds.

“Canadian electricity powers the equivalent of 6 million American homes.” pic.twitter.com/1V3O7wra6Z
— Atlantic Council (@AtlanticCouncil) February 4, 2025

Perhaps the most significant warning from Canada is its potential suspension of electricity exports to several U.S. states. If enacted, this measure could severely impact regions like Michigan, New York, and Minnesota, which heavily rely on Canadian power supplies.

What this means for consumers and businesses

The escalating trade war between these neighboring nations will undoubtedly have direct consequences for both consumers and businesses on both sides of the border. Prices for key goods may rise, availability of certain products could shrink, and economic tensions between Canada and the U.S. are likely to intensify in the months ahead.

Original article written by María Dávila, translated with the assistance of AI and edited by Greg Heilman.