The Liquor Control Board of Ontario (LCBO) has removed all US alcohol products from its shelves after the Trump administration’s tariffs on Canada and Mexico took effect at midnight on Tuesday (March 4).
The new tariffs impose a 25 percent duty on Canadian goods and a 10 percent tariff on energy exports to the US. In response, Ontario enacted retaliatory measures that were already being considered when the Trump administration first hinted at tariffs weeks ago.
Ontario Premier Doug Ford directed the LCBO — the world’s largest alcohol purchaser, according to Global News — to pull American alcohol from stores and online catalogues. As a result, bars, restaurants, and other retailers in the province will no longer be able to restock US alcohol brands. The LCBO’s website briefly went offline on Tuesday to remove affected products.
Ontario imports nearly $1 billion worth of alcohol annually, with US products previously accounting for 3,600 items from 36 states. Ford emphasised the scale of the move, calling it a “major blow” to American producers. However, he added that the products will be placed in storage and could return to shelves if tariffs are lifted.
“As the exclusive wholesaler, American brands will no longer be available in the LCBO catalogue, meaning other retailers, bars and restaurants in the province will no longer be able to restock US products,” Ford said Tuesday. “This is an enormous hit to the American producers.”
‘Worse than a tariff’
The decision triggered swift backlash from US producers. Lawson Whiting, CEO of Jack Daniel’s parent company Brown-Forman, said Wednesday that pulling American products off shelves entirely is “worse than a tariff,” calling the move a “disproportionate response.”
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, (and) completely removing our products from the shelves,” said Whiting during a post-earnings call, according to Reuters.
Canada also enacted its own set of 25 percent tariffs on US goods, including alcohol, on Tuesday. However, Whiting downplayed the impact on Brown-Forman’s bottom line, noting that Canada accounts for just one percent of its global sales.
He added that Mexico, which contributes seven percent of annual sales, could become a greater concern if further trade disputes arise.
Despite expressing concerns about “uncertainty and external headwinds,” Whiting said he remains confident in the company’s overall performance.
‘The craziest idea’
Meanwhile, Premier Ford appeared on ABC News, calling Trump’s tariffs “the craziest idea,” adding that they “caught everyone off guard.” Alongside pulling American alcohol, Ford also announced plans to impose a 25 percent export tax on electricity supplied to US homes.
“That’s the last thing I want to do. I want to put more alcohol on the shelves. I want to give you more electricity. I want to do everything I can to have a great relationship with our closest friends that we absolutely love,” said Ford.
Ontario to terminate its contract with Starlink
Ford also revealed that Ontario would terminate its contract with Starlink, Elon Musk’s satellite internet service. The premier clarified that his actions were aimed at Trump’s policies, not Americans or their elected representatives.
“It’s not the people of America, it’s not the elected officials, it’s one person that has caused this issue, and that was President Trump,” said Ford. “We have to retaliate—as much as we don’t want to—to our closest friends and allies.”
“We look at the U.S. as a family member,” he added. “It’s like we’re their little brother or little sister and it’s been going on for 200 years. Now we have to protect our country against our great ally.”