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Ontario pulls US alcohol from LCBO in retaliation against Trump tariffs

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March 5, 2025
in Investing
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Ontario pulls US alcohol from LCBO in retaliation against Trump tariffs

Ontario has taken the dramatic step of pulling more than 3,600 US-produced alcohol products from its Liquor Control Board of Ontario (LCBO) catalogue.

Premier Doug Ford describes this as the province’s “first round of retaliation” against Donald Trump’s latest raft of tariffs targeting Canadian goods.

As the exclusive wholesaler in the province, the LCBO’s decision effectively cuts off the supply of key American brands to not only Ontario’s consumers, but also to bars, restaurants and retailers that rely on LCBO stock. The agency’s website was temporarily taken offline to remove US listings, though customers can still purchase existing inventory in-store for the time being.

The move carries significant weight: Ontario is one of the world’s largest buyers of American alcohol, selling nearly £570 million (CA$965 million) worth of US wine, beer, cider and spirits each year. Ford has indicated these products will remain off shelves and in LCBO warehouses until the White House reverses its position.

Industry voices in the province appear broadly supportive. The Ontario Restaurant Hotel and Motel Association is urging locals to embrace home-grown alternatives in solidarity. Meanwhile, the Ontario Craft Brewers Association backs the ban, arguing that US tariffs on steel and aluminium raise costs for local brewers, jeopardising their competitiveness.

However, industry groups such as Restaurants Canada worry that escalating the trade war will hurt hospitality businesses already struggling with staffing and cost pressures. Many have called on government to reduce taxes and tariffs to protect jobs and help maintain affordable consumer prices.

Ontario’s stand is not isolated: several other provinces, including British Columbia and Quebec, have followed suit with their own measures against US-made drink imports. While the Trump administration insists its tariffs are needed to secure better trade deals, critics point out that both sides risk economic pain if tensions continue to mount.

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