I am not the biggest fan of tariffs, as I am a believer in free markets. Free trade is a positive and provides us a wide range of goods from everywhere in world. From French wines to foreign cars, I have enjoyed the consumer benefits of free trade.

Last week we saw the potential tariff war play out when President Trump threatened a 25% tariff on Mexican and Canadian goods. He based his tariffs on Mexico and Canada not doing enough to secure the border, and halt the flow of illegal immigration and fentanyl across the border.

Fortunately, an agreement was hashed out for 30 days that will delay the 25% implementation of tariffs.

In the worst-case scenario, if a sound deal does not get done in 30 days, then the 25% tariffs are back on.

What is our exposure as U.S. consumers, Canadian goods will become more expensive and unattractive to purchase. However, if you are willing to pay more, you can still purchase Canadian whiskey or that Molson you so desired. If you are willing to boycott their goods because of the trade war or because you don’t want to pay higher prices, that is also your choice. It isn’t up to the government to tell you what to do.

Crying Canada

Now politicians on both sides of the border never miss an opportunity to exaggerate a situation. I am from Chicago originally and I am all too familiar with the traits of irrationality from the political class. Unfortunately, our neighbors from the North consist of politicians suffering from the same syndrome!

Case in point Canada’s political class and its over the top reaction to the proposed tariffs.

Keep in mind these are not just words from a blowhard group of politicians. In Canada the provincial governments control a great part of the alcohol trade and in some provinces the government store is the only game in town!

So how did these government officials respond to the 25% tariffs? By American prohibition! No, it was not enough to raise the prices 25% to match the tariffs, these government officials wanted an all out ban on American products.

That is right, if a poor Canadian wanted to get Jack Daniels too bad, go to the black market or travel to another province and find it there, if you can. Or if your lucky find a private store in the province, who has a smaller selection than the government store.

In Nova Scotia, Premier Tim Houston was ready to pull the trigger and remove all, U.S. beer, wine, and spirits products from the shelves. The government is the main retailer of alcohol products in the province.[1] Ditto for Ontario Premier Doug Ford, the government is far and away the largest alcohol retailer in Ontario. Manitoba Premier Wad Kinew joined the party and ordered sales of American products to stop and all the products be pulled from the shelves.

Even Quebec where you can’t get spirits and only a small choice of wine in private stores, the Premier there was going to remove all American products from the shelves.

Finally, there was British Columbia Premier David Eby, who was less discriminatory and would only direct his underlings to stop purchasing American liquor from Republican-led states. No word on how he would account for Virginia product, where the governor is a Republican but the state voted for Kamala Harris.

Here is my point, tariffs hurt consumers and we get swept up in the wave of international disagreement by paying higher cost. But the reaction of the Canadian political class throws gasoline on the fire.

It may make for good TV in Canada to say you stood up to Trump, but isn’t a little absurd to prohibit the sale of American products? Especially when Canadian consumer gets no say in the matter!

If a Canadian drinks Southern Comfort regularly and decides I am not buying anymore because of the tariffs isn’t that their choice?  Why does the political class feel the need to make this choice for them? No one asked you to come into their house and tell them what they couldn’t consume.

I am crying for Canada right now, it is a wonderful place to visit, the people are fantastic, and they will talk hockey with you all day. And the exchange rate is not bad either. I usually make an annual visit there and always enjoy myself.

The trade war will eventually find its medium and the longest and most peaceful border will sustain itself. We have a great neighbor to the North but sometimes the political class creates a gulf that is not needed.  And finally, I cry for Canada because its political class decides to play parent on the populous and mandate how it should live its life, instead of giving them the freedom to choose.

[1] https://www.foxbusiness.com/politics/canadian-provinces-pull-us-made-alcohol-shelves-trump-tariffs