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U.S. President Donald Trump has ordered a ban Canadian booze effective later this month, but for one winery in Ontario’s Niagara region, his tariffs have already killed the possibility of selling to Americans.
“There’s no product in the world that could compete in a marketplace with a tariff that high,” said Jamie Slingerland, director of viticulture for Pillitteri Estates Winery, pointing to the 50 per cent tariff imposed as of Aug. 22.
His Niagara-on-the-Lake,-Ont., company has five main buyers in the U.S. who love their “very Canadian” product, but have been left “flabbergasted.”
Last Tuesday, Trump signed five proclamations, including banning import of alcoholic drinks and other goods as of Sept 29. and adding 50 per cent tariffs to other items, such as whey, molasses, furniture, and paper and wood products.
The move comes after 20 months of escalating trade action between Canada and the U.S.
Winery shipped early to beat latest tariffs
Knowing tariffs were coming, Slingerland said, the winery pivoted. Instead of preparing wine to export in the fall before the holiday shopping season, Pillitteri accelerated its schedule and exported four months early. Slingerland said their buyers are keeping the product in storage until closer to Christmas.
He said the family-owned winery was able to act quickly in part because it’s smaller and independent. Other wineries, he said, likely don’t have that option.
“We’re not laying anybody off. We’re not reducing production. We’re pushing ahead.”
The U.S. is set to ban imports of most Canadian alcohol starting Sept. 29 as the trade war with Canada escalates. Wine Growers B.C. president and CEO Jeff Guignard calls the move ‘unprecedented and deeply frustrating’ and says Canadian consumers should support domestic producers.
Ontario wineries support 22,000 jobs: association
There are 186 wineries in Ontario, and they generate about $711 million in revenue and support about 22,000 jobs, according to industry association Grape Growers of Ontario.
The association website says its industry generates an economic impact of $5.49 billion for the province, including through taxes, tourism and suppliers, per a 2019 study by Wine Growers Ontario.
Grape Growers has said it recommends businesses impacted by trade disruptions look into federal support programs such as the government of Canada’s Regional Tariff Response Initiative.
John Boynton is president of Arterra Wines, which owns wineries including Jackson-Triggs and Inniskillin, and retail chain Wine Rack. He told CBC his team is “disappointed” by the import ban.
“More than anything, businesses need stability and predictability to plan, invest and grow, and unfortunately the level of uncertainty facing our industry continues to increase rather than decrease,” he said in an emailed statement.
Alcohol products have been used as leverage on both sides of the border, Boynton said, creating challenges for businesses, workers and customers.
He said it’s too early to determine the full impact of Trump’s latest ban plan, but in the meantime, his company will focus on “supporting our customers and partners while we assess the implications of this latest measure.”
Slingerland and Boynton both called on the federal government to renew its Wine Sector Support program, which is set to end March 31.
CBC Hamilton asked Agriculture and Agri-Food Canada (AAFC) if the government plans to renew the program or is considering doing so.
In an email on Monday, AAFC said the government “remains committed to active engagement with the Canadian wine industry on how best to support its competitiveness and resilience in the current context.”
AAFC said the program has supported wineries with $343 million over five years.
