American products to be pulled off Manitoba Liquor Mart shelves Tuesday in response to U.S. tariffs
'If you have to switch to Crown Royal as part of us upholding patriotism ... that's a pretty good deal': Kinew
Premier Wab Kinew announced Sunday that Manitoba Liquor and Lotteries Corporation will stop selling products imported from the United States in response to a 25 per cent tariff imposed by U.S. President Donald Trump on Canadian goods that will kick in on Tuesday.
Starting Feb. 4, staff at the province's Liquor Marts will be directed to pull American products off the shelves and will stop ordering alcohol from the U.S., the premier told reporters at a news conference Sunday.
Kinew said the halt of American alcohol sales in Manitoba alone will pull $80 million annually from the U.S. economy.
"This is a trade dispute, this is an economic threat, but we should also be very clear-eyed about the threat this poses to our sovereignty as an independent country," Kinew said.
Kinew added Manitoba has taken action in regards to security in the U.S.-Canada border and has brought "the hammer down to drug traffickers" in response to demands from Trump that he says also align with the province's values.
But "if we bow down at this current moment, what is the next edict that we will be told to respond to as Manitobans and Canadians?" he said.
Manitoba is joining Nova Scotia, B.C., Ontario and other provinces that have also yanked the sale of American alcohol with plans to remove the product from store shelves and halt orders from south of the border.
"If you have to switch to Crown Royal as part of us upholding that patriotism, I think that's a pretty good deal," Kinew said.
A symbolic move
On his way into the Liquor Mart in Winnipeg's Osborne Village, Herb Neufeld called the removal of U.S. products a symbolic move.
"It will be noticed. Will it shake things up in the U.S.? Probably not at all," he said.
Outside the store Peter Mason is standing behind Kinew's decision, but said Canada's response to the White House tariffs should go even further.
"Canada, in my opinion, it should just cut off the gas, cut off the water, cut off the electricity," supplied to the U.S. he said.
"If we did a smart move like this, it might wake Trump up a little bit ... but right now it's a kids war ... these people should just grow up."
WATCH | Manitoba looking to 'send a message' to U.S. with tariff response, Kinew says:
Prime Minister Justin Trudeau announced late Saturday the federal government will fight back against Trump by slapping 25 per cent tariffs on $30 billion worth of American goods coming into Canada as of Tuesday.
The tariffs will then be applied to another $125 billion worth of American imports in three weeks' time, Trudeau said.
Kinew said Mantioba fully supports the measures taken by the federal government in response to the U.S. levy.
"This is going to be … a multi-year situation," he said. "We are going to be making some tough decisions."
Paired with the restriction of alcohol, the province said support for businesses and workers will be announced throughout next week, including tax deferrals. Manitoba has also set up a tariff hotline and website to answer questions about trade with the U.S., Kinew said.
Further measures will be introduced into the upcoming spring budget to re-orient the economy toward business that bolsters Manitoba's economy, Kinew said, but didn't offer specifics other than pointing out the need to strengthen the mining, energy and technology sectors.
The Progressive Conservatives said Kinew's plan is "still missing too many details" and Sunday's announcement could have been made weeks ago.
While businesses are on the front lines of the trade war, Kinew said the impacts could be far-reaching and they raise the question of having enough resources to pay for public services including health care and schools.
"This is a serious situation," the premier said.
"We have no quarrel with the American people, these are still our friends and neighbours," he said. "But their president is making a serious mistake and we have to take action."
Shift toward buying Canadian
The premier said now is also the time for the province to diversify the countries it exports to, but given how the supply chain is built to serve American customers, it's going to take time.
"The bigger project here is a long-term shift toward protectionism," Kinew said. "Manitobans and Canadians need to make up for lost time ... getting our economy where it needs to be."
However as the tariffs pose a "real threat" to the economy, the premier said consumers need to start shifting toward buying Canadian.
Manitoba isn't considering removing the provincial retail sales tax from domestic products at the moment. Kinew said the province will incentivize consumers to shop local, but Manitoba needs to preserve its fiscal firepower to protect jobs and support the economy.
He is also calling on grocery chains and retailers to highlight local products.
"This is a question about national identity. This is a question about who we are as Canadians," he said.
One of the main exports from Manitoba into the U.S. is hydro electricity. Crown corporation Manitoba Hydro sold $702 million worth of electricity to the U.S. in 2023, according to a Manitoba Bureau of Statistics summary.
Kinew said signed contracts will stand even though Trump has levied a 10 per cent tariff on energy exports.
With the tariff, the price of electricity for some in the U.S. could spike, Kinew said, which might get Americans paying more attention to the trade war.
But for the moment the province will rely on other measures to support the economy, Kinew said, including "pulling American resources away" and reinvesting them in the province to counteract the tariffs.
"As this continues to play out ... unity is one of the most important tools that we have in order to leverage onto the U.S.," the premier said.
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With files from Bartley Kives