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Ontario Bans U.S. Alcohol from Shelves Amid Trump Tariff Dispute

By Jake Beardslee · February 3, 2025

Ontario Bans U.S. Alcohol in Response to Tariffs

Ontario Premier Doug Ford announced that the province will remove all American alcohol products from government-run liquor stores starting Tuesday, in direct retaliation against U.S. President Donald Trump’s imposition of 25% tariffs on Canadian imports.

According to a statement issued by Ford on Sunday, the Liquor Control Board of Ontario (LCBO) will not only clear its shelves of U.S.-made alcoholic beverages but will also remove American products from its catalog, preventing other retailers from ordering or restocking them.  Eurasia Group / Wikimedia

Ford Encourages Support for Canadian Alcohol Producers

“Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits and seltzers. Not anymore,” Ford stated. “There’s never been a better time to choose an amazing Ontario-made or Canadian-made product.”

Ford’s move came shortly after Canadian Prime Minister Justin Trudeau imposed a 25% retaliatory tariff on $155 billion worth of U.S. goods, according to Reuters.  Joey Coleman / Wikimedia

Ontario’s Alcohol Market and U.S. Import Figures

As one of the largest alcohol wholesalers in the world, LCBO sold over 1.1 billion liters of alcohol in Ontario in 2023. Data from the Observatory of Economic Complexity (OEC) shows that Canada imports roughly $320 million worth of hard liquor from the U.S. annually. As of October 2024, Canada was the second-largest market for U.S. liquor exports, with trade valued at $25.9 million, according to OEC figures.  Chris F / Pexels

LCBO Confirms Indefinite Ban on U.S. Alcohol Sales

In a statement to CNBC, the LCBO confirmed that sales of U.S. alcohol in stores and online would be halted “indefinitely.” The agency emphasized that it serves as the “importer of record” for all American alcohol entering Ontario and currently lists over 3,600 products from 35 U.S. states.  Juliana Stein / Pexels

Other Canadian Provinces Follow Ontario’s Lead

Ontario’s decision aligns with similar actions taken by other Canadian provinces. Nova Scotia Premier Tim Houston instructed the Nova Scotia Liquor Corporation to remove all American alcohol from its shelves, while British Columbia Premier David Eby directed the BC Liquor Distribution Branch to “immediately stop buying American liquor from ‘red states’” and remove top-selling brands from those states from its inventory.  DuyNod / Pixabay