Wednesday, February 19, 2025

Ontario to Remove U.S. Alcohol from Shelves after Trump Tariffs

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Ontario to Remove U.S. Alcohol from Shelves after Trump Tariffs

Government Takes Action

The Liquor Control Board of Ontario (LCBO) will remove all American alcohol products from its shelves beginning Tuesday in response to U.S. President Donald Trump’s 25% tariffs on Canadian imports. Ontario Premier Doug Ford ordered the products to be off the shelves, effective Tuesday, when the tariff is set to go into place.

Impact on Sales

Every year, the LCBO sells nearly $1 billion worth of American wine, beer, spirits, and seltzers. However, this will no longer be the case. “There’s never been a better time to choose an amazing Ontario-made or Canadian-made product,” Ford said.

Retaliatory Measures

Ford’s announcement came just hours after Canadian Prime Minister Justin Trudeau slapped retaliatory tariffs of 25% against $155 billion of U.S. goods. This move is a response to the U.S. tariffs, which were announced earlier this year.

Affects on Trade

The LCBO is one of the largest wholesalers of alcohol, selling over 1.1 billion liters of alcohol products in Ontario in 2023. Canada primarily imports hard liquor from the U.S., with an estimated $320 million in sales. According to the Observatory of Economic Complexity, the U.S.’s second main export destination for liquor is Canada, with a $25.9 million trade value as of October 2024.

LCBO’s Statement

In a statement provided to CNBC, the LCBO said it will be stopping all sales of U.S. alcohol products online and in stores “indefinitely.” The LCBO is the “importer of record” for all American alcohol into Ontario. Currently, the LCBO lists over 3,600 products from 35 U.S. states.

Similar Actions by Other Provinces

The move follows similar actions by other Canadian premiers. Nova Scotia Premier Tim Houston directed the Nova Scotia Liquor Corporation to remove all American alcohol from their shelves on Tuesday. British Columbia Premier David Eby directed the BC Liquor Distribution Branch to “immediately stop buying American liquor from ‘red states’ and remove the top-selling ‘red-state’ brands from the shelves.”

Conclusion

The removal of U.S. alcohol products from Ontario’s shelves is a significant move in response to the U.S. tariffs. As the largest wholesaler of alcohol in Ontario, the LCBO’s decision will have a significant impact on the market. This move is a clear demonstration of the escalating trade tensions between the U.S. and Canada.

FAQs

* What is the reason for the removal of U.S. alcohol products from Ontario’s shelves?
+ The removal is in response to U.S. President Donald Trump’s 25% tariffs on Canadian imports.
* How much does the LCBO sell in U.S. products annually?
+ The LCBO sells nearly $1 billion worth of American wine, beer, spirits, and seltzers annually.
* What is the impact of this move on the trade between the U.S. and Canada?
+ The U.S.’s second main export destination for liquor is Canada, with a $25.9 million trade value as of October 2024.
* What is the LCBO’s statement on the removal of U.S. products?
+ The LCBO will be stopping all sales of U.S. alcohol products online and in stores “indefinitely.”

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