U.S. liquor going back on NLC shelves, while push to buy local continues
Canadian companies sourcing American materials will drive costs up for local breweries
The Newfoundland and Labrador government says U.S. alcohol is going back onto shelves, for now, because of the 30-day pause on tariffs.
On Tuesday morning, one day after announcing they were pulling liquor imported from the U.S. off the shelves in Newfoundland and Labrador Liquor Corporation stores in response to President Trump's tariffs, the premier's office told CBC News they were reversing the decision.
Meanwhile, while two Newfoundland and Labrador breweries say pulling American liquor from provincial shelves makes sense in the fight against U.S. President Donald Trump's delayed tariffs, buying local is more complicated than just avoiding American brands.
Peter Madden, co-founder of Wooden Walls Distilling, said the province makes world class beer and spirits at home, and is encouraged that consumers want to shop local.
"If more people see our stuff on the shelves and they taste it, they can learn that, 'Yeah, you can buy local and you can still get the high quality'," Madden said Monday.
Hours before the tariffs were scheduled to come into effect, Prime Minister Justin Trudeau announced Trump had changed his plans and will hold off on tariffs for at least 30 days.
But while a push to buy local as a result of tariffs could result in more business, another local brewer says the impacts of the added cost from tariffs on both sides of the border could outweigh any benefit.
"The downside is we're likely going to see a lot of our input costs rise as well," Justin Fong, co-owner of Quidi Vidi Brewery, said. "The frustrations to the rest of the system are probably going to cause more headache than that gain."
Fong said businesses will have to work through the nuances of the tariffs. For example, the brewery works with a Quebec company on its packaging but that company sometimes sources its paper from the U.S.
"It's a little bit tricky. Even when you look like you're purchasing from a Canadian company, sometimes their inputs come from the U.S. or there's some other relation. So it's really, really tough to know all of the impact, but that's kind of an easy one that's definitely going to be a negative," Fong said.
AnnMarie Boudreau, CEO of the St. John's Board of Trade, said other businesses are still working to understand the potential impact of the tariffs.
She told CBC News Monday that she's excited by a public desire to want to buy local, but says there's a lot more that goes into it than people realize.
"Sometimes it's not that cut and dry, and it may require a little more research and a little more understanding than simply saying 'I now only purchase this brand," Boudreau said. "Sometimes these things are a little more nuanced."
Boudreau said she recommends researching brands to determine local connections to Newfoundland and Labrador. Some American brands — like Pepsi, Coors and Walmart — are operated in Newfoundland and Labrador by local franchisees, for example.
She said if consumers have questions or concerns, business owners have a better grip on their product than most.
"When we're thinking about supporting local and going into our local shops and services throughout our community, going in and having a conversation and getting that little piece of education from an owner or from someone who works there is tremendously valuable."
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With files from Darrell Roberts