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The U.S. Alcohol Ban Is Now Live: Who's Exempt, Who's Shut Out, and What It Means for Your Wallet

  At 12:01 a.m. ET on Tuesday, Sept. 29, the United States stopped letting most packaged Canadian beer, wine, cider and spirits through the border. Not taxed. Blocked. It's the sharpest step yet in the alcohol front of the trade war, and it lands on a very uneven set of shoulders. Two weeks ago we walked through what was coming. Now that it's live, here's what the ban actually covers, who slips through, and what it does (and doesn't) mean for your own budget. What took effect The White House announced the measures on Sept. 8, after Canada's own retaliation tariffs kicked in. The U.S. framed them as a response to Canada's treatment of American dairy, autos and alcohol, and to provinces pulling U.S. liquor from their shelves. The ban covers packaged Canadian beer (including non-alcoholic), wine, cider and spirits, plus whey products, molasses and motorcycles over 800cc. Many of the alcohol products were already facing a 50% U.S. tariff imposed in August; the ban ...
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Banks face challenges as fiscal year ends

                                     

The fiscal year 2023 has been a tough one for Canada’s major banks, as they faced rising costs, regulatory pressures and credit risks. Analysts expect their fourth-quarter earnings, which will be reported this week, to show a decline from last year.

Some of the challenges that the banks encountered this year include:

  • Cost-cutting measures: Some banks, such as RBC and Scotiabank, have reduced their work force and real estate holdings to lower their expenses. Others, such as BMO, have completed or planned major integrations of their acquisitions.
  • Regulatory scrutiny: TD Bank is awaiting the outcome of investigations by U.S. authorities over its anti-money-laundering practices, which could result in fines or other penalties. RBC’s proposed takeover of HSBC’s Canadian unit has also faced opposition from political and environmental groups.
  • Credit risks: As interest rates rise and inflation persists, the banks have increased their provisions for potential loan losses, anticipating higher defaults from their borrowers. The banks are also required to hold more capital by the banking watchdog, OSFI, to cushion against an economic downturn.
  • Slow loan growth: The demand for lending has been dampened by the high cost of borrowing and the uncertainty over the economic recovery. The banks have also faced stiff competition from fintechs and other non-bank lenders, who offer more convenient and cheaper alternatives.

Despite these headwinds, the banks are still well-positioned to weather the storm, as they have strong capital ratios, diversified businesses and loyal customers. The banks are also investing in digital transformation, innovation and growth opportunities, especially in international markets. Analysts and investors will be looking for signs of resilience and optimism from the banks as they wrap up the fiscal year.

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