Ontario removing U.S. alcohol from LCBO as ‘first round of retaliation’ against Trump’s tariffs

Ontario Premier Doug Ford says the LBCO will no longer stock American brands and the contract with Starlink has been scrapped as a response to tariffs.

Ontario Premier Doug Ford says the Liquor Control Board of Ontario (LCBO) is removing more than 3,600 American-made alcohol products as part of its “first round of retaliation” against U.S. President Donald Trump’s sweeping tariffs on Canadian goods.

“As the exclusive wholesaler, American brands will no longer be available in LCBO catalogue, meaning other retailers, bars and restaurants in the province will no longer be able to restock U.S. products,” Ford told reporters on Tuesday afternoon.

“This is an enormous hit to the American producers. Every year, the LCBO sells nearly $1 billion worth of U.S. wine, beer, cider, seltzers and spirits, including more than 3,600 products from 35 states.”

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The LCBO’s website remains down as the Crown agency removes all American alcohol from its catalogue, however, customers can still buy booze in stores.

Images provided by the LCBO on Tuesday morning showed workers removing bottles of American whiskey and wine from store shelves.

All remaining alcohol will remain in warehouses for the time being, Ivana Yelich, spokesperson for the premier, confirmed to CTV News Toronto.

“We’ll wait until the tariffs come off the table and then depending on where we’re at, we’ll restock the shelves,” Ford said. But until further notice, all U.S. liquor – including Kentucky bourbon, which the premier pointed to as an example – are “done” and “gone” from the LCBO’s shelves, the premier said.

Ontario is one of the biggest buyers of American-made alcohol in the world and has previously said it sells up to $965 million worth of U.S. alcohol annually.

‘We stand united’

Tony Elenis, president and CEO of the Ontario Restaurant Hotel and Motel Association, told CTV News Toronto now is the time to drink local products.

“We stand united with our government’s actions. All people in Ontario should. The consequences are much greater if we don’t,” Elenis said.

The Ontario Craft Brewers Association (OCB) said it also strongly supports the move to remove U.S.-made alcohol amid Trump’s tariffs, noting these levies—like the one specifically targeting steel and aluminum—drive up the costs for Ontarian breweries.

OCB President Scott Simmons said there are two things that need to be done to help small businesses “weather the headwinds of this trade war,” including having the LCBO put local or Canadian brands first and the having the province “fast-track its planned and long-needed tax reforms for the craft beer sector.”

“As Ontario looks to support home-grown sectors and industries, it is critical that it move to immediately lower Ontario’s marginal tax rate, to help ensure craft breweries are in a position to compete, grow, and thrive now and into the future,” Simmons said in a statement.

To fill any of the gaps on LCBO’s shelves, at least for wine, Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, says their association can swiftly step in to stock up.

The Distilled Spirits Council of the United States (DISCUS) said they support Trump’s goal of protecting Americans and their jobs by pursuing “fair and reciprocal trade,” however the organization added it “makes no sense” to get embroiled in a trade dispute with Canada and Mexico.

“Tariffs on spirits products from Canada and Mexico will jeopardize the industry’s contribution to the U.S. economy,” Chris Swonger, DISCUS CEO, said in a statement, noting how intertwined the American spirits sector is with its neighbours.

“American spirits consumers as well as restaurants and bars across our country that are still struggling following the pandemic closures will shoulder the burden of these tariffs.”

Impact on local restaurants

Speaking to CP24 Tuesday afternoon, Richard Alexander, executive vice-president of government relations public affairs for Restaurants Canada, said the industry is primarily concerned with how these retaliatory tariffs will impact workers as the restaurant industry represents the fourth-largest private sector employer in the country.

“We employ a lot of people. These people need their paychecks to be able to pay for rent, put food on the table, these types of things, and these mom-and-pop operations are already struggling,” Alexander said. “That’s why we’ve asked the government to say they’re looking for options to be able to provide relief to Canadians.”

Alexander pointed to the recent success seen during the holiday tax break—when the federal and provincial government stalled sales taxes on select goods, including sit-down meals—saying that temporary program generated an additional 34,000 jobs in the restaurant industry.

“That is a way that the government can act to be able to protect these jobs and stop taxing food in our country,” the Restaurants Canada President said.

While touting the importance of a Team Canada approach against retaliatory tariffs, when it comes to providing substitutes for certain liquor, Alexander suggests breaking down “ridiculous” provincial trade barriers. For alcohol, most provinces prevent non-local wine from being shipped directly to consumers, with Ontarians having no other choice but to order through the LCBO should they want to order Okanagan Valley wine, for example.

“Everybody needs to do our part, and governments need to look closely at what they can do to help support Canadians during this very difficult time,” Alexander said.

Outside of Ontario, British Columbia, Nova Scotia and Newfoundland and Labrador have also moved to stop selling U.S. alcohol in response to the tariffs.

In B.C., Premier David Eby said the province is making the concerted choice to “target red state” alcohol, adding the desire to send a message to U.S. governors and congress people that “they have a chance to stand up to the president and to point out that jobs in their communities are dependent good relationship with Canada.”