Canada-US Trade War Escalates: Entertainment and Liquor Industries Feel Immediate Impact

The escalating trade war between Canada and the United States is creating immediate ripple effects across multiple Canadian industries, with entertainment venues and liquor merchants reporting significant impacts as of March 2025.

In Vancouver, concert venues are facing increased operational costs due to new tariffs on U.S. equipment and an unfavorable exchange rate. Alex Grigg, director of operations at the Hollywood Theatre, reports that quotes for technical equipment have already increased, with limited Canadian-made alternatives available [1].

The Alberta Gaming, Liquor and Cannabis Commission (AGLC) announced a new tiered markup system on wines, effective April 1, 2025, adding:- 5% on wines priced $15-20 per litre- 10% on wines priced $20-25 per litre- 15% on wines priced above $25 per litre [2]

In response to U.S. 25% tariffs on Canadian exports, Alberta has announced a complete ban on U.S. liquor products [2]. This represents a significant escalation in the trade dispute between the two nations.

'The exchange rate has been a consistent issue,' says Grigg, noting that venues are struggling to maintain profitable margins while booking U.S. artists [1]. Industry experts warn this could lead to fewer American performers touring in Canadian markets and higher ticket prices for consumers.

The wine industry is particularly affected, with Andrew Ferguson, owner of Kensington Wine Market, stating the new markup 'effectively penalizes people for drinking better wine.' A $100 bottle will increase to $115 under the new structure [2].