A terse exchange unfolded Wednesday between U.S. Commerce Secretary Howard Lutnick and U.S. Senator Jeanne Shaheen over the issue of Canadian sales of U.S. alcohol, with the secretary saying it was “insulting and disrespectful to America” for Canada not to put U.S. spirits on its shelves.
Lutnick was testifying before a Senate Appropriations subcommittee on U.S. President Donald Trump’s 2027 budget request when he took a question from Shaheen, a Democratic senator from New Hampshire since 2009 and the state’s governor between 1997 and 2003.
Shaheen began by noting that tourism is the second-largest industry in New Hampshire but that international visitors to the U.S. declined 5.5 per cent last year — the only major economy to see a decline — and that tourism from Canada fell 30 per cent in her state last year, “largely due to the loss of trust and goodwill because of this administration’s rhetoric around Canada.”
She continued: “Last week you said about Canada’s economic strategy, and I quote:
… How does insulting our closest ally and neighbour help the businesses in my state of New Hampshire and states all across the country who are hurting because of the loss of Canadian business and tourism?”
Lutnick began to reply by saying that Canada’s economy “leans on the incredible $30-trillion economy of America,” but Shaheen cut him off to ask specifically about insulting language.
Lutnick then replied: “It is outrageous that Canada will not put U.S. spirits on the shelf. It is insulting and disrespectful to America.”
Shaheen said: “It is. And my husband has an interest in a company that has American spirits, and they won’t do it because of the insults from this president, and comments like yours.”
Lutnick then brought up the issue of dairy, another trade issue between the two countries, saying the government was “fighting for that,” and that New Hampshire cared about the issue.
“We do,” Shaheen responded, “but we are not going to get agreement when we keep insulting people. When we have allies and partners, we should try and work with them, not insult them. And I find your rhetoric insulting to the people in my state who are working so hard to try and ensure that they can do business.”
Lutnick’s earlier comment came last Friday when he was asked for his thoughts on Canada’s negotiating strategy with the United States and responded: “Good for them. That’s like the worst strategy I have ever heard. They suck.”
Currently, Alberta and Saskatchewan are the only Canadian provinces to sell U.S. alcohol. Ontario Premier Doug Ford said in February that he would not back down on the ban.
“I encourage people not to back off,”
“This is key that we even double down if we have to. We’re the largest purchaser of alcohol in the entire world, and that’s one of our key negotiating areas that we can resolve within a minute. All President Trump has to do is get rid of the unfair tariffs.”
The ban continues to be a thorn in the side of the U.S. administration. A recently released report on
from the office of the president has a section on alcohol that notes: “The United States continues to raise serious concerns regarding these actions and to press Canada to ensure that U.S. alcohol beverages immediately and permanently return to all provincial and territorial markets.”
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