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LCBO could axe US alcohol over tariffs

Ontario premier Doug Ford has threatened to pull American alcohol from stores if a tariff is placed on Canadian products.

LCBO store
There are more than 600 LCBO stores across Ontario

In November, Donald Trump said he would issue an executive order to charge Mexico and Canada a 25% tariff on all products coming into the US when he takes office.

Speaking at the Rural Ontario Municipal Association (Roma) Conference in Toronto on Monday (20 January), Ford said he had directed the Liquor Control Board of Ontario (LCBO) to “clear off every bit of US alcohol off the shelves” if president Trump moves forward with new tariffs on Canadian goods.

He told the audience on the day of Trump’s inauguration: “Let’s start promoting more Ontarian-made wines, vodkas and spirits – that’s what we need to do. We’re the largest purchaser of alcohol in the entire world, they will feel the pain. I will make sure I communicate this to our other premiers that they should be following suit.”

The LCBO is the government-run agency that controls liquor stores across Ontario.

In his speech, Ford also noted that he had spoken to Kentucky governor Andy Beshear, who told the Ontario leader that Canada should keep its hands off the state’s Bourbon. In response to the governor’s comment, Ford told conference attendees that Bourbon would be on the list of products that Canada would target if tariffs come into force.

This week, Trump said 1 February 2025 could be the start date for the tariffs on Canadian and Mexican products.

The proposed 25% duty on Mexican and Canadian products, alongside other tariffs on wine and spirits, could result in US$5 billion in lost tax revenue, according to data cited by trade body the Wine & Spirits Wholesalers of America.

The CEO of the Distilled Spirits Council of the US previously warned that a tariff on Canadian whisky, one of its largest trading partners, could “kick off more retaliatory tariffs on American spirits to Canada and Mexico”.

American whiskey, Tequila and ready-to-drink cocktails were among the categories that consumers purchased the most in LCBO stores in the past year.

Approximately 10,000 workers at LCBO went on strike in July 2024 – the first in LCBO’s 97-year history.

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