In a dramatic escalation of trade tensions, the Liquor Control Board of Ontario (LCBO) has removed all U.S. alcohol from its shelves in retaliation for tariffs imposed by the Trump administration. The move, ordered by Ontario Premier Doug Ford, has sparked outcry from American distillers, with Jack Daniel’s CEO calling it “worse than a tariff.”
Ontario Strikes Back
The Trump administration’s tariffs, which took effect at midnight on Tuesday, impose a 25% duty on Canadian goods and an additional 10% tariff on energy. In response, Ford instructed the LCBO—one of the world’s largest alcohol buyers—to pull American alcohol products from its inventory, impacting bars, restaurants, and retailers across the province.
“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 U.S. products,” Ford said. The province annually imports alcohol worth ZAR 18.5 billion and had previously stocked 3,600 U.S. products from 36 states.
Ford added that the removed alcohol would be stored and sold later if the tariffs were lifted.
Jack Daniel’s CEO: ‘This Is Worse Than a Tariff’
Brown-Forman CEO Lawson Whiting, whose company manufactures Jack Daniel’s, criticized Ontario’s response as excessive.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away (and) completely removing our products from the shelves,” Whiting said in a post-earnings call.
Despite the ban, Whiting downplayed the financial impact, noting that Canadian sales make up just 1% of the company’s total revenue. However, he expressed concerns about potential retaliatory actions in Mexico, where the company derives 7% of its sales.
Canada Implements Counter-Tariffs
On Tuesday, Canada also implemented 25% tariffs on certain U.S. goods, including alcohol, in response to Trump’s measures.
Ford, speaking to ABC News, called Trump’s trade policy the “craziest idea” and claimed it “caught everyone off guard.” In addition to the alcohol ban, Ford announced a 25% export tax on electricity for U.S. homes and the termination of a contract with Elon Musk’s Starlink satellite internet service.
“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,” Ford stated. “We have to retaliate—as much as we don’t want to—to our closest friends and allies.”
Despite the brewing trade conflict, Ford emphasized Canada’s long-standing relationship with the U.S., likening it to a sibling bond.
“We look at the U.S. as a family member. 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.”
With tensions high and both nations locked in a tit-for-tat trade war, the fate of U.S. alcohol sales in Canada remains uncertain. Whether diplomatic negotiations can ease the strain—or escalate the conflict—remains to be seen.
