Photo by Tim Vandergrift

It's time to say something about Canada's reaction to Trump's tariff saber-rattling. Part of Canada's response, their retaliation, to the tariffs imposed on Canadian goods coming into the U.S. has been focused on the U.S. booze industries, particularly on spirits and wine.

Most Canadian provinces, including Ontario, Quebec, British Columbia, the Maritimes, and Manitoba have not only stopped buying American booze, but have taken what they have off the shelves in their provincial stores. The LCBO, Ontario's monopoly wine and spirits system, is one of the five largest alcohol retailers in the world. They have taken all American-made products off their shelves, boxed it up and put it in storage. The NSLC swept over 1,250 American products off the shelves in Nova Scotia.

Photo via Flicker User A Disappearing Act

How big a deal is that? Canada is America’s largest export market for wine: they bought $422 million last year. Canadians also bought $305 million worth of American spirits, the second largest export market after the EU. I know a lot of people in the industry on both sides of the border. They have had various reactions to this.

Here’s how it is on our side. Some Americans are tentatively supportive; a few strongly support these moves. Some are confused, wondering why the provinces are taking bottles off the shelves and not just stopping new orders. Jack Daniel’s parent corporation Brown-Forman called it “worse than a tariff.”

Some Americans are openly angry, reacting along the lines of "so what, Canada, who cares? Their whisky sucks, and I don't need them." I'm embarrassed when I hear people who should know better say things like that. Their whisky by God doesn’t suck, but that's not the point. They’re the second-largest importer of American spirits, and the US booze industry imports a lot of Canadian grain, but that’s not even the point.

The point is that none of this had to happen, and we don't make it better by pretending it doesn't matter. That’s the story on our side of the border. Not good, but it’s about higher prices, likely some lost jobs, and we’re concerned.

Photo via Flickr User Richard Bartlaga

To the north? If any Canadians have a reaction other than blazing defiance, I haven't heard from them yet. The most common reaction has been pure Canada: a non-smiling "Elbows up!", echoing Mr. Hockey, Saskatchewan-born Gordie Howe, a player who took no shit off anyone. Anyone who tried to slash Howe was getting a fast elbow to the head. Canada's ready for this, and they're not kidding.

The angry Americans are right about one thing. The Canadian response of taking everything off the shelves, leaving only blank space behind, is disproportionate and goes further than the American tariffs. This doesn't just affect day-to-day, month-on-month sales. This kind of action also attacks something much more valuable: the brand. Raise the price while leaving the bottles on the shelf, and you paradoxically make people think about the brand more, maybe even realize how much they ARE willing to spend to get it.

But take the bottles away, leaving an empty shelf with a "BUY CANADIAN INSTEAD" sign, and the American product becomes invisible. A shopper in Toronto isn’t thinking about the Jack, or the Mondavi, and what they’d be willing to pay for them. Now they're thinking "Welp, I guess I'll get some Lot 40 or Gibson's 12. I'll get a bottle of Quail's Gate for dinner, or how about that Italian red? I've got no beef with the Italians."

Photos by Stephen Beaumont

The American brands are no longer even a choice, and that does long-term damage to the brand. As Don Draper put it in his icily cutting response, "I don't think about you at all." Now, multiply that times every American product that we send to Canada. It's gone, and the memory is fading, or worse, indelibly tinged with anger.

Why anger? Because of tariffs imposed by an ally, a country that has been an ally for so long, in so many things, that for us to turn on Canada isn't economics; it's betrayal, a shocking discard of trust. We have over 200 years of trade with Canada. They’ve fought alongside Americans in both World Wars, Korea, even the Gulf War.

The point is, we have a trade treaty with Canada. We have zero legitimate issues with Canadian trade. The "look at the tariffs Canada puts on American products!!" misinformation you've seen lately? Those tariffs are all part of that trade treaty. We have no real trade problems with Canada. But it's not even about trade for the Canadians. President Trump's constant needling about the "51st state," and "Governor" Trudeau, about border issues and annexing part or all of the country, whether or not it's another of his insanely unfunny jokes, has Canadians concerned, and rightly so. They're concerned about the intentions of a superpower that has set the tone of restraint in international politics for the past 70 years, but has suddenly begun openly talking about grabbing territory. Canada, Greenland, Panama, Gaza; why would they not take Trump seriously?
 

Photo by Robin LeBlanc

So for the Canadians, this is not about economics, this is not about money. It is about national existence, and the response should not be expected to make sense in economic terms. The Canadians did not choose this fight. It was shoved onto them by one man, President Donald Trump, elected by a plurality of American voters, who apparently support him in it. If they don't take that seriously, they're deluding themselves.

Bottom line: Canada has been forced to this point. They've been pushed into the corner, and like any good hockey player, they've got their elbows up, ready to push it off and deal it out, and we should not be surprised by that. This game is being played at levels above the liquor store, but it still plays out there, like wars, politicians, and soldiers.

Photo via Flickr User Theo Crazzolara

If you’re in the business, don't be angry with your Canadian customer; don't be angry with your American supplier. Neither of them is to blame. Blame the ones who made this happen. Then maybe have a nice, cold Crown and ginger ale; Canada Dry, of course.

Lew Bryson has a new book coming in September: American Whiskey Master Class.