A ban on Canadian booze

SPEAKER_1 (0:00)

Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? Introducing Odoo, the only business software you'll ever need. It's an all-in-one, fully integrated platform that makes your work easier, from CRM, accounting, inventory, e-commerce and more. And the best part, Odoo replaces multiple expensive platforms for a fraction of the cost. This is why over thousands of businesses have made the switch. So why not you?

Try Odoo for free at odoo.com. That's odoo.com.

SPEAKER_2 (0:30)

Are you looking to invest in municipal bonds? For extra protection, buy bonds insured by Assured Guarantee.

It guarantees 100% of your principal and interest will be paid when due. Assured Guarantee has demonstrated its reliability and financial strength for nearly four decades. That's why the bonds they back are one of the safest investments you can make. Visit assuredguarantee.com. Assured Guarantee, a stronger bond.

Nancy Marshall-Ginzer (0:59)

The U.S.-Canada trade war heats up again.

From Marketplace in Washington, I'm Nancy Marshall-Ginzer in for Kimberly Adams. The Trump administration is ramping up its trade war against Canada. As of this morning, the US has officially banned imports of Canadian wine, beer and spirits along with motorcycles, molasses and whey protein. This move was first announced several weeks ago. It takes effect as the two sides do not appear to be in a rush to reach a trade agreement. Marketplace's Henry Epp is here with more. Good morning, Henry.

Henry Epp (1:32)

Hey, Nancy.

Nancy Marshall-Ginzer (1:33)

So this import ban targets a few different industries. But why is Canadian alcohol the main focus?

Henry Epp (1:40)

It goes back to how many Canadian provinces reacted to President Trump's first tariffs early last year. Many provinces own and operate liquor stores. So removing American booze from their shelves was a quick way that they could respond to American aggression. Now, the Trump administration appears to be trying to make a similar move. But just as American alcohol didn't disappear from Canada entirely, Canadian drinks won't be gone here either. For example, the ban only applies to spirits in packages under four liters. So larger brands like the Canadian whiskey Crown Royal ship in much larger containers and then bottle their products in the US. So the ban won't affect them.

Nancy Marshall-Ginzer (2:18)

Huh. Of course, there's a backstory here. This follows rounds of tit-for-tat tariffs that went as high as 50 percent that were imposed several weeks ago.

Is this escalation getting the two sides back to the negotiating table?

Henry Epp (2:33)

Trade representatives are actively talking to each other. And President Trump said yesterday he thinks Canada will soon apologize and seek a trade agreement. But Canadian officials have made clear that they are not in a rush to make a deal.

And that's partly because the tariffs and now this import ban apply to a fairly small slice of trade between the two countries. This ban affects nearly a billion dollars worth of goods. And the US did upwards of $700 billion worth of trade with Canada last year. There are impacts, though, particularly for small businesses on both sides of the border. And those could grow if this drags on.

Nancy Marshall-Ginzer (3:09)

For sure. Marketplace's Henry Epp, thank you.

Henry Epp (3:12)

You're welcome.

Nancy Marshall-Ginzer (3:13)

Tomorrow morning, we get the latest reading on what has been the Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditures Price Index. It tracks how much people in the US are spending on goods and services. I asked Dr. David Kelly, Chief Global Strategist for JP Morgan Asset Management, what he'll be looking for in the PCE report.

David Kelly (3:34)

Well, the government is going to revise data going back a number of years. They do this every September, so they actually revise all the data going back over the last five years.

And this time around, that's pretty important, because what the Federal Reserve tries to do is it's trying to get the inflation rate as measured by the PCE deflation. They're trying to get that to 2 percent, but that's been running very hot recently relative to CPI. It's usually below the CPI inflation rate. Now, it's above the CPI inflation rate, but they're going to revise all the data, revise some of the kinks in it. So I want to see how much that revision brings down the trend on the PCE deflation.

Nancy Marshall-Ginzer (4:07)

JP Morgan economist, Dr. David Kelly.

SPEAKER_1 (4:27)

Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? Introducing Odoo, the only business software you'll ever need. It's an all-in-one, fully integrated platform that makes your work easier. From CRM, accounting, inventory, e-commerce, and more. And the best part, Odoo replaces multiple expensive platforms for a fraction of the cost. This is why over thousands of businesses have made the switch. So why not you?