Americans are set to encounter fewer Canadian products on store shelves if a proposed U.S. ban is implemented later this month. However, Crown Royal, a prominent Canadian whiskey producer, has structured its operations to bypass the import restrictions threatened by the Trump administration. On Tuesday, President Trump revealed plans to ban Canadian shipments of alcohol, dairy items, and motorcycles in response to Canada’s implementation of counter-tariffs on approximately $20 billion worth of U.S. merchandise. This ban is slated to begin on September 29. Unlike tariffs, which typically take time to impact supply chains and reach consumers, a ban would have an immediate effect because affected Canadian items will vanish from retail shelves and dealerships once current stock runs out, according to industry experts. Wendong Zhang, an economist at the Cornell SC Johnson College of Business, explained that while tariffs take time to filter down, a ban instantly eliminates the product and supplier regardless of price, leading to the removal of Canadian goods from stores. The administration’s ban targets only the import of specified Canadian merchandise and does not prohibit the sale of items already present within the United States. Columbia Business School economist Brett House criticized the measure, stating it is detrimental to everyone by either cutting off access or increasing costs for American buyers. House noted that consumers might pivot to domestic alternatives, observing that none of the three restricted categories are exclusively available from Canada, though shoppers might experience lower satisfaction from not getting their preferred specific items. The White House did not reply to inquiries concerning arguments that the restriction would restrict choices for U.S. shoppers. Before the administration announced the liquor import ban, Crown Royal had already taken measures to safeguard its entry into the American market. Although the brand continues to distill its whiskey in Manitoba, Canada, it previously relocated its bottling facilities from Ontario to Alabama. Although the White House proclamation prohibits shipping Canadian alcohol to the U.S., the policy details provide a workaround for the brand. An annex specifying the banned items indicates that only whiskey contained in vessels under four liters is restricted from importation, permitting Canadian whiskey to cross the border in containers exceeding four liters. Crown Royal did not immediately respond to inquiries regarding the ban’s impact on its operations.
Source: cbsnews.com
