Since Donald Trump was elected President of the United States a second time, Canadians and elected officials have had some common concerns, but the biggest one seems to be the threat of U.S. tariffs.
The tariffs against Canada were set to go into effect Tuesday, Feb. 4, and would have seen a 25 per cent fee on Canadian goods sent stateside, whereas the energy sector would have been hit with 10 per cent fees. Canada was also set to apply 25 per cent tariffs on imports worth $30 billion from the U.S.
On Feb. 3, the tariff action was paused after a negotiation between Prime Minister Justin Trudeau and Trump, where the U.S. leader agreed to not impose tariffs on Canada for the next 30 days. The same announcement was made earlier in the day for Mexico.
Trump has said the tariffs are intended to force Canada and Mexico to further militarize their borders, with the assertion that Mexican cartels in Canada are posing a threat to the United States and the importation of fentanyl to the U.S. from neighbouring countries is a threat to Americans.
"I have also signed a new intelligence directive on organized crime and fentanyl, and we will be backing it with $200 million," Trudeau said on X. Trudeau also agreed to hire a “Fentanyl Czar,” and previously agreed on initiatives include reinforcing border security through helicopters, security technology and 10,000 border personnel, a plan worth $1.3 billion.
Provincially, on Feb. 1, Premier David Eby announced liquor from Republican states was no longer welcome in B.C. as retaliation for the initial tariff threat. The same day, the BC Liquor Distribution Branch (BCLDB) sent a letter to industry throwing its support behind the province’s decision. The top five red-state brands pulled from government-run liquor stores include Jack Daniels, Bacardi Rum, Tito’s Vodka, Jim Beam and Bulleit Bourbon.
Following Monday’s announcement of the pause, Eby also said he was pausing retaliatory tariffs, including on liquor.
The Resort Municipality of Whistler's (RMOW) Mayor Jack Crompton said in an emailed statement that while the tariff threat aims to put Canada off-kilter, he hopes Whistlerites can separate citizenry from its leaders.
“I think the goal of tariffs and threats of tariffs is to put us off balance. There is probably value in approaching the new U.S. administration in a sober and measured fashion,” he said.
“Whistler has a long history of welcoming Americans, and we will continue to do so. I hope we can separate the actions of this administration from the people who have been such a big part of our town for decades.”
But what does the uncertainty of tariff threats do to consumer and business confidence in Whistler?
Tito's woes
David Brownridge checked his email Saturday evening and learned the private liquor store he manages, Nesters Liquor, would no longer be able to purchase popular American brands, including Tito’s Vodka, a Texas-owned company whose product is the best-selling vodka at the store he manages.
“There was little to no lead time, I tried to order more within 10 hours of receiving the email and it came up as product out of stock and nothing available,” he said. “I would have loved more time to support our customers by providing what they want.”
Private stores are regulated through the BCLDB, and purchase inventory from the provincial regulator. Despite the temporary ban, customers were still looking to buy the product.
“People are asking to buy a lot, so now we have to limit the amount people can buy,” Brownridge said.
While B.C. Minister of Housing Ravi Kahlon, who is also chair of the cabinet committee leading the province's tariff response, said the red-state liquor ban was based on logic that Trump ignores democratic states, the response doesn’t consider a brand’s political stripes.
Tito’s Vodka’s website includes a statement of non-partisanship, stating the company “does not endorse, nor donate, to political candidates, campaigns or parties. Additionally, Tito’s does not influence, nor track, employee political donations.”
Nesters’ owner, Andrew Ellott, said he’s doing the best he can to keep up with the uncertainty and he hopes consumers will look for Canadian products and buy local.
“You just have to pivot and be as flexible as much as possible. It’s not overly challenging for us, it would be really tough if there was a 25-per-cent tariff. As a business, these things happen from time to time,” Ellott said. “The GST tax holiday at Christmas was harder; we had to figure out which SKU’s were exempt. This is harder for consumers. If you love Tito’s, that’s a problem.”
Business advocacy response
Eric Griffith is the president of the Restaurant Association of Whistler (RAW), and co-owner of Alta Bistro.
He said in an interview as the pause was announced there wasn’t enough information to know how the tariffs would impact Whistler.
“Technically, we export tourism. If there was cross-border obstruction, that would be a concern, but we don’t know what exactly will be impacted,” he said.
He added the province's response to pull some U.S. liquor seemed like a “knee-jerk” response, and from RAW’s perspective, uncertainty is unwelcome.
“Everyone is worried about the impact on their business, and it’s never good to have uncertainty considering the state of the economy in the last five years,” Griffith said.
Louise Walker, executive director for the Whistler Chamber of Commerce, was preparing to send a survey out to Chamber members to understand how the tariffs would impact local businesses before the pause was announced.
“We're pleased with the news of a 30-day pause on tariffs. The U.S is our neighbour, friend and closest trading partner. We want to see both governments work together to maintain the strong partnership between Canada and the U.S., and to help businesses and communities on both sides of the border thrive," Walker said. "We believe the pause is a step forward in meeting the needs of both governments, as they determine a permanent solution."
Crompton said the RMOW will follow the federal government's lead in response, but the tariff threat has got him thinking locally.
“There are all kinds of great local products and services available to us as Canadians," he said. "This has certainly prompted me to look at labels and buy B.C. when I can."
Are you a Whistlerite concerned about what tariffs could mean for your business or the cost of living? Pique wants to hear from you: [email protected].
