Ontario Pulls American Alcoholic Beverages from Shelves in Response to Trump’s Tariffs
Background
The Liquor Control Board of Ontario will remove American alcohol from its shelves in response to U.S. President Donald Trump’s 25% tariffs on Canadian imports.
Government Action
Ontario Premier Doug Ford ordered the products to be off the shelves beginning Tuesday, when the tariff is set to go into place.
LCBO’s Response
Outlets of the Liquor Control Board of Ontario will also take U.S. products out of its catalog so other retailers can’t order or restock those items, according to a Sunday statement by Premier Doug Ford.
Statement by Premier Ford
“Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits, and seltzers. Not anymore,” Ford said. “There’s never been a better time to choose an amazing Ontario-made or Canadian-made product.”
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.
Economic Impact
The LCBO is one of the largest wholesalers of alcohol, selling more than 1.1 billion liters of alcohol products in Ontario in 2023. According to the Observatory of Economic Complexity, Canada primarily imports hard liquor from America with an estimated $320 million in sales. The U.S.’s second main export destination for liquor as of October 2024 is Canada, with a $25.9 million trade value, according to the OEC.
LCBO’s Stance
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,” adding that it is the “importer of record” for all American alcohol into Ontario. LCBO currently lists more than 3,600 products from 35 U.S. states, the statement added.
Other Canadian Premiers’ Actions
The move follows other similar Canadian premiers’ announcements of retaliation to the tariffs, including Nova Scotia Premier Tim Houston directing the Nova Scotia Liquor Corporation to remove all American alcohol from their shelves on Tuesday and British Columbia Premier David Eby directing 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 decision by the Liquor Control Board of Ontario to remove American alcohol from its shelves is a significant move in response to the tariffs imposed by the U.S. President Donald Trump. This move is likely to have a significant impact on the Canadian economy, particularly in the alcohol industry.
FAQs
Q: Why is the Liquor Control Board of Ontario removing American alcohol from its shelves?
A: The LCBO is removing American alcohol from its shelves in response to U.S. President Donald Trump’s 25% tariffs on Canadian imports.
Q: What is the impact of this decision on the Canadian economy?
A: The decision is likely to have a significant impact on the Canadian economy, particularly in the alcohol industry, as it will reduce the amount of American products available in the market and promote the sale of Canadian-made products.
Q: What other Canadian premiers have taken similar actions?
A: Nova Scotia Premier Tim Houston and British Columbia Premier David Eby have also directed their respective liquor corporations to remove American alcohol from their shelves or stop buying American liquor from “red states” and remove the top-selling “red-state” brands from the shelves.
