The US alcohol industry is not exactly the lifeblood of the US economy. Its annual exports to Canada before the boycott were measured in hundreds of millions of dollars, not billions.
But there’s a reason why Trump wants Jack Daniels and Jim Beam on Canadian shelves, even if it means risking the livelihoods of constituencies like farmers or the US auto industry, which have a much bigger impact on the US economy.
Drinking is a cultural, perhaps even performative behavior. You usually drink a beer in front of someone, and whether it’s a Bud Light (pre- or post-Dylan Mulvaney) or an IPA from a local brewer may give off a certain message about you and what you believe. Swapping an American bourbon for a Canadian whisky is therefore a relatively cheap way to make a big statement.
Alcohol is also unusually easy for Canada to weaponize. Provincial governments control much of its distribution, meaning they can effectively make American bottles disappear from store shelves.
So, although it’s not likely to make a big dent in the US economy, Canada has an outsized bargaining chip. And judging by the latest round of negotiations, its provinces aren’t eager to give it up.