In response to newly imposed US tariffs on goods from Canada, the Ontario government has mandated the Liquor Control Board of Ontario (LCBO) to cease the sale of all American alcohol products, both in physical stores and online.
On 1 February 2025, US President Donald Trump signed three executive orders that introduced a 25% tariff on goods from Canada and Mexico and a 10% tariff on all imports from China.
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Effective 4 February 2025, the LCBO will eliminate from its inventory spirits, wines, beers, ready-to-drink coolers and cocktails, and non-alcoholic beverages sourced from the US.
The directive also extends to wholesale operations, meaning that restaurants, bars, grocery outlets and other retailers will no longer be able to order or replenish US alcohol products through the LCBO.
Premier Doug Ford articulated the government’s stance on social media platform X, formerly known as Twitter:
“Every year, LCBO sells nearly $1bn worth of American wine, beer, spirits and seltzers. Not anymore.
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By GlobalData“Starting Tuesday, we’re removing American products from LCBO shelves. As the only wholesaler of alcohol in the province, LCBO will also remove American products from its catalogue so other Ontario-based restaurants and retailers can’t order or restock US products.
“There’s never been a better time to choose an amazing Ontario-made or Canadian-made products. As always, please drink responsibly.”
The LCBO is a government-owned enterprise and a retailer and wholesaler of wines, beers and spirits in Ontario.
It serves as the importer of record for all US alcohol products entering Ontario and has reported annual sales figures approaching $965m.
The retailer offers more than 3,600 products from 35 different states across the US.
The agency has stated that it will not resume purchasing American products until further notice is received from the provincial government.
The decision to ban US liquor was also endorsed by the Ontario Restaurant Hotel and Motel Association.
The provinces of British Columbia (BC) and Nova Scotia have also decided to remove American liquor from their provincially owned stores.
BC Premier David Eby instructed BC Liquor stores to “immediately cease purchasing American liquor from red states”.
The development follows after Ontario broadened the scope for alcohol distribution within the province on 31 October 2024.
Grocery and large-scale retail outlets are now permitted to seek authorisation from the Alcohol and Gaming Commission of Ontario to sell alcoholic beverages, which encompasses beer, cider, wine and pre-mixed drinks in various sizes, including beer cases of 24 units.
The Financial Accountability Office of Ontario has forecast that the provincial government’s plan to broaden the scope of its alcohol retail environment by 2024 will lead to an estimated financial impact of C$1.4bn by the year 2030.
The Retail Council of Canada (RCC) is actively engaging in advocacy efforts to address significant industry concerns such as pricing structures set by the LCBO, limitations on trade expenditures, logistical hurdles and impending regulations related to beverage container returns.
