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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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5 Things to Know Today (Sept 30): Banks Closed, U.S. Booze Ban, Rising Mortgage Rates

 

It's Wednesday, September 30, and today is a federal holiday, so plan your banking accordingly. Meanwhile the U.S. booze ban is now in force, fixed mortgage rates keep climbing, the economy stalled in July and Ontario's minimum wage rises tomorrow. Here's what matters for your wallet.

1 Banks are closed today, so don't leave payments to the last minute

Today is the National Day for Truth and Reconciliation. It's a federal statutory holiday, which means bank branches, Canada Post, the CRA and Service Canada are closed. It is not a statutory holiday in Ontario, so schools, TTC and GO Transit run as usual, most stores are open and LCBOs open at noon. The TSX is scheduled to trade, but trade settlement is paused for the day, so trades made today settle later than usual.

What it means for you: If something has to land by October 1 (rent, a bill, a cheque deposit), don't count on today. Transfers and cheque deposits may not post until Thursday, so send them early or confirm the timing with your bank.
2 The U.S. ban on Canadian alcohol took effect yesterday

At 12:01 a.m. ET on Tuesday, the U.S. ban on many Canadian alcohol imports kicked in. It covers bottled whisky and most other packaged beverages, including beer, wine and spirits, while many bulk, unbottled shipments are still allowed. Alcohol makes up roughly 87% of the Canadian goods covered, according to the American Action Forum, and a U.S. official put the total at "single-digit billions" of dollars. Big global brands may be able to shift bottling to the U.S. and dodge the ban; smaller Canadian distillers and brewers have far fewer options.

What it means for you: Nothing changes at the till today. The exposure is indirect: jobs and suppliers tied to Canadian distilleries, breweries and wineries, especially in Ontario. Whether more product staying at home means lower shelf prices is an open question, so don't bank on it.
3 Fixed mortgage rates are rising again as bond yields hit new highs

The Government of Canada 5-year bond yield, the benchmark lenders use to price fixed mortgages, hit a new 52-week high of 3.729% on Monday and was around 3.68% on Tuesday morning. CIBC and TD raised select fixed rates by 20 basis points, mostly on 3- and 5-year terms, joining BMO, National Bank, RBC and Scotiabank. South of the border, the 30-year Treasury yield is at a 24-year high, and Wall Street is awaiting U.S. inflation (PCE) and GDP data this morning. The Bank of Canada's October 28 decision was priced as close to a coin flip in mid-September, though RBC, Desjardins and Capital Economics lean toward a hold.

What it means for you: Your fixed rate follows bond yields, not the Bank of Canada's policy rate, so it can rise even while the BoC holds at 2.25%. If you renew or buy in the coming months, ask your lender or broker about a rate hold and compare quotes this week, not next month.
4 Canada's economy stalled in July, and the TSX is near an eight-week low

Statistics Canada reported GDP was unchanged in July after a 0.4% gain in June (revised). Manufacturing fell 0.9% and retail trade dropped 1.0%, while construction grew 1.3%. An early estimate points to a 0.2% rebound in August, and the Bank of Canada is forecasting 1.5% annualized growth for the third quarter. The TSX closed Tuesday at 35,460.27 (-0.08%), a day after a 311-point slide to its lowest close in about eight weeks, and the loonie is trading around 70.5 US cents.

What it means for you: Soft growth normally means lower rates, but oil near US$96 and surging yields are keeping the Bank of Canada from that script. Don't count on relief for borrowers soon, and a weaker loonie makes U.S. travel and imported goods costlier.
5 Ontario's minimum wage rises tomorrow, October 1

The general minimum wage goes from $17.60 to $17.95 an hour, a 35-cent (about 2%) increase tied to inflation. The student rate rises to $16.90, and the homeworker rate to $19.70. The province says more than 700,000 workers are affected; a full-time worker at 40 hours a week gains about $728 a year. Ontario's rate stays second-highest in the country behind British Columbia's $18.25.

What it means for you: Workers should check that the first pay stub covering October 1 reflects the new rate. Anyone who employs staff, including a cleaner, a nanny or a small-business team, needs updated payroll for hours worked on or after October 1, even if a pay period straddles the date.
By the Numbers (Tuesday, Sept. 29 close)
MarketLevelChange
S&P/TSX Composite35,460.27-0.08%
S&P 5007,670.84-0.16%
Dow Jones51,349.92-0.26%
Nasdaq26,797.54-0.09%
Brent crude (US$/bbl)96.16-1.7%
Gold (US$/oz, Dec futures)4,179.70+0.27%
Canadian dollar (approx.)70.5 US cents—
Coming Up

Thursday, Oct. 1: Ontario's new minimum wage takes effect and banks reopen. Wednesday, Oct. 28: Bank of Canada rate decision with an updated Monetary Policy Report.

Canadian Money Brief is published by MoneySavings.ca for general information only and is not financial, legal or tax advice. Market figures are as of the Tuesday, September 29 close unless noted; the TSX close is the unofficial figure from The Canadian Press. Rates and quotes vary by lender.

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