N.B. producers will feel the squeeze of U.S. ban on certain Canadian goods

N.B. producers will feel the squeeze of U.S. ban on certain Canadian goods

Import ban on beer, molasses will come into effect on Sept. 29

U.S. President Donald Trump’s new trade sanctions on Canada will affect some signature New Brunswick brands.

A series of proclamations made by Trump late Tuesday will ban some products from being imported into the U.S. and add others to the list of products facing 50 per cent tariffs.

Beer and molasses are on the list of banned imports, which will affect Moosehead Breweries and Crosby’s Molasses.

The new tariffs will come into effect on Sept. 15 and the import ban comes into effect on Sept. 29, according to Trump’s proclamation.

Some aluminum products, furniture and other wood or paper will face 50 per cent tariffs.

Andrew Oland, the president and CEO of Moosehead Breweries, said the brewery will be working to ship out cases before the ban comes into effect.

“We are working very hard with our importer in the U.S. and our distributor to line up as many as we can to ship to the U.S. over the next three weeks,” said Oland.

He said those cases will face 50 per cent tariffs which came into effect in August.

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Oland said despite the tariff, keeping shelf space in U.S. stores is vital. He said 15 per cent of the brewery's production is destined for the U.S. and is sold in 50 states.

“Hannaford in Maine or Publix in Florida, they don't see too many empty shelves in those stores. And if a product is not available, then the retailers will simply put something else in its place,” said Oland.

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Crosby’s Molasses said they feel for their U.S. customers.

Peter Davis, a marketing manager at Crosby’s Molasses, said in an emailed statement they’re still navigating what this ban means for them.

The province didn’t share much information about a response to more tariffs or the new import ban.

Katie Beers, a spokesperson for Premier Susan Holt, said New Brunswick is working on a response and an announcement could come on Thursday.

Moosehead will sell out in the U.S.

Oland said the U.S. inventories of Moosehead products, which are mostly in eastern states, are currently healthy, since a rush of beer was delivered ahead of the August tariffs.

But he said the longer the ban goes on, the tougher it will be to get back on U.S. shelves.

He said having a few weeks to work before the ban is a positive. He hopes the government will also be working on trade negotiations up until the ban comes into place.

“I'm a beer glasses half-full person. So hopefully this gives us a couple of weeks to get back to the negotiating table and even if you don't get a deal, even if you could just delay some of these measures.”

Oland said he thinks if the ban comes into place as scheduled, Moosehead products will start selling out in the U.S. around late-October.

He said Moosehead is focused on selling more beer in its top market — Canada. He said they’re also exploring new exports to Europe as well as in Central and South America.

One brewery pondering move to U.S.

Zoltan Fox, a co-owner of Mother Mushroom Brewery on Campobello Island, said since the island only has access to Maine year-round most of his customers are there.

He said customers will come from Lubec, Maine, which has a bridge connecting to Campobello Island.

“They grab a four-pack, a six-pack, 12-pack, whatever they're doing, they're having a little house party or whatever it is, they come and grab some beers,” said Fox.

He said U.S. sales account for at least 67 per cent of his total sales.

Fox said he is now thinking of moving to where his customers are since direct access to Canada is seasonal.

“When we live on an island of 800 people that has no connection for eight months of the year to our own country, I'm unsure what we're supposed to do other than try and move our brewery to the other side of the bridge,” said Fox.

Fox hasn’t made any final decisions, but he’s considering making the move across the bridge to Maine.

Oliver Pearson is a reporter at CBC New Brunswick. He can be reached at oliver.pearson@cbc.ca