Canada’s two largest provinces will remove US liquor brands from government-run stores starting tomorrow in response to President Donald Trump’s tariffs on Canadian imports. The decision affects Ontario, British Columbia, and Nova Scotia, with the Liquor Control Board of Ontario set to stop selling US products. The move follows Trump’s 25% tariff on Canadian goods and Mexican imports.
The US liquor market will lose access to a $965 million annual market in Canada. The LCBO sells over 3,600 US products annually, including nearly $1 billion worth of American wine, beer, spirits, and seltzers. The government has promised more information for local customers and suppliers.
Canadian restaurant and hotel organizations have rallied behind the decision, urging consumers to buy home-grown beverages. British Columbia Premier David Eby specifically directed BC Liquor stores to stop buying from “red states.”
The US liquor industry has criticized the move, with Chris Swonger, president of the Distilled Spirits Council, calling it “extremely disappointing and counterproductive.” National Retail Federation Executive Vice President David French expressed concern over the tariffs’ impact on trade relationships.
This is not the first time Canada has imposed retaliatory tariffs on US liquor; Kentucky-style whiskey was targeted during the Trump administration’s first term. The move has sparked concerns about the future of trade between the two countries.
Source: https://www.forbes.com/sites/markfaithfull/2025/02/03/canada-strips-shelves-of-us-liquor-first-casualty-of-tariff-wars