Impact of US Tariffs
Tariff News
Governments across Canada reacted to the news that the Trump administration is implementing sweeping tariffs on Canadian goods (regional responses below). These tariffs, and the retaliatory measures Canadian governments will implement, will have a major impact on the Canadian economy and be felt across sectors. Many of the provinces are considering changing their procurement rules to prohibit American companies from bidding on government contracts. The details of these measures, and specifically what constitutes an “American” company, are sparse but we expect they will be public in the coming days.
The federal government’s full response and plan to implement countermeasures can be found here: Canada’s response to U.S. tariffs – Canada.ca
The situation is still in flux. It has been reported that the tariffs on Mexico have been delayed by a month in response to Mexican President Claudia Sheinbaum agreeing to deploy 10,000 Mexican National Guard troops to the U.S. border. PM Trudeau is also speaking with President Trump today but it is not certain they will reach a similar compromise.
As long as the threat of tariffs remains, the situation will remain tenuous.
CHG recognizes that this will have a major impact on many of our clients. Your consultants are available to chat with you about this evolving situation. Please reach out.
Regional Responses
Newfoundland and Labrador
- All US liquor products were removed from liquor stores.
Prince Edward Island
- In response to the announcement of the U.S. Administration imposing tariffs on Canadian products starting on Tuesday, the PEI Government will take immediate steps to remove U.S.-based products from liquor stores and will be limiting procurement with U.S.-based companies.
- By Tuesday, all American wines, beer, and spirits will be removed from provincial liquor store shelves across the province. As the PEI Liquor Control Commission is the sole wholesaler for these products in Prince Edward Island, these products will be removed from the catalogue of products offered by the LCC which will mean that restaurants and agency stores can’t reorder or restock U.S. products.
- In addition, current procurement with U.S. companies is being reviewed and wherever possible, the provincial government will be limiting commerce with U.S. companies and entities moving forward, including canceling existing contracts, limiting the ability for U.S. companies to bid or compete for provincial government contracts.
Nova Scotia
- First, Nova Scotia will limit access to provincial procurement for American businesses. We will look for opportunities to cancel existing contracts and will maintain the option to reject bids outright because of President Trump’s unlawful tariffs.
- Second, the cost of tolls at the Cobequid Pass will double for commercial vehicles from the United States, effective Monday, February 3.
- Finally, we will direct the Nova Scotia Liquor Corporation to remove all alcohol from the United States from their shelves effective Tuesday, February 4.
New Brunswick
Plan to be released on Monday, February 3, 2025
Ontario
- Premier Doug Ford has ordered the Liquor Control Board of Ontario (LCBO) to remove American products from its shelves, starting Tuesday.
- Ontario is banning American companies from provincial contracts.
Manitoba
- Premier Wab Kinew directed Manitoba Liquor and Lotteries (MBLL) to remove all U.S. alcohol products from shelves in the province.
- The province plans to roll out additional support measures for Manitoba businesses and workers over the coming week to help mitigate the impact of the tariffs.
Saskatchewan
- Opted for diplomacy over retaliatory measures.
Alberta
- Opted for diplomacy over retaliatory measures.
British Columbia
- Eby directed the B.C. Liquor Distribution Branch to immediately stop purchasing American liquor from Republican-led “red states” and remove the top-selling brands from public liquor store shelves.
- Eby directed the B.C. government and Crown corporations on Saturday to buy Canadian goods and services over American ones.