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Ontario removes US alcohol from shelves in tariff retaliation
In response to President Trump’s 25% tariffs on Canadian imports, Ontario’s Liquor Control Board will cease sales of American alcoholic beverages.
Canada’s most populous province, Ontario, has announced that its government-run liquor stores will remove American alcoholic products from their shelves starting Tuesday (4 February) coinciding with the implementation of President Donald Trump’s 25% tariffs on Canadian imports.
Premier Doug Ford stated that the Liquor Control Board of Ontario (LCBO), which serves as the province’s sole alcohol wholesaler and records nearly C$1 billion in annual sales of American wine, beer, spirits, and seltzers, will also exclude US products from its catalogue, preventing other retailers and restaurants from restocking these items.
“Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits and seltzers. Not anymore,” Ford said in the statement on Sunday (2 February). “There’s never been a better time to choose an amazing Ontario-made or Canadian-made product.”
The LCBO is among the largest alcohol wholesalers, having sold over 1.1 billion litres of alcohol in Ontario in 2023. According to the Observatory of Economic Complexity (OEC), Canada’s primary alcohol imports from the US are spirits, valued at an estimated $320 million. As of October 2024, Canada was the second-largest export market for American liquor, with a trade value of $25.9 million, the OEC reports.
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The domino effect
The move aligns with similar actions taken by other Canadian provinces. British Columbia’s premier David Eby directed the provincial liquor distributor to remove certain alcohol brands produced in Republican-led US states from retail stores and halt further purchases.
These provincial measures complement the federal government’s response, as Prime Minister Justin Trudeau announced retaliatory tariffs on C$155 billion worth of American-made products and indicated that provincial leaders were preparing their own non-tariff responses.
The escalating trade tensions have prompted concerns within the drinks industry. As previously reported by db, the sector has been bracing for potential impacts following President Trump’s election victory and the anticipated implementation of tariffs affecting various beverage markets.
China threatens lawsuit
Imports from China will face a 10% tariff over and above existing US tariffs. Beijing has strongly opposed the move, vowing to take “necessary countermeasures” to safeguard its interests. As trade tensions escalate, China’s Ministry of Commerce has announced plans to file a lawsuit with the World Trade Organization (WTO) in response to the measures, The Financial Times reported.
Industry stakeholders are closely monitoring the situation, assessing the potential implications for supply chains and market dynamics resulting from these retaliatory measures.
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