Canadian Provinces pull US alcohol from shelves in trade dispute, sparking industry Backlash

In a sharp escalation of trade tensions, several Canadian provinces, led by Ontario, have removed US-made alcoholic beverages from store shelves in retaliation for US tariffs on Canadian goods. The Liquor Control Board of Ontario (LCBO), one of the world’s largest alcohol buyers, took the unprecedented step this week, drawing criticism from US industry leaders.

Lawson Whiting, CEO of Brown-Forman, the maker of Jack Daniel’s, called the move “disproportionate” and “worse than tariffs,” arguing it completely eliminates sales opportunities.

Ontario Premier Doug Ford confirmed the LCBO, the province’s exclusive wholesaler, has halted sales of nearly $1 billion worth of US alcohol annually, impacting retailers, bars, and restaurants.

Canada imposed 25% tariffs on US goods, including alcohol, after the Trump administration levied similar duties on Canadian steel and aluminum.

While Brown-Forman downplays the impact, citing Canada as only 1% of its sales, the symbolic move underscores deepening trade tensions.

Prime Minister Justin Trudeau criticized the US tariffs as “a very dumb thing to do,” while some Canadians are shifting to local products.

Meanwhile, Trump’s remarks about annexing Canada have further strained relations, with Foreign Minister Mélanie Joly taking the comments “very seriously.”

As the dispute unfolds, industry watchers are also monitoring Mexico, where Brown-Forman faces similar tariffs, highlighting the broader implications of Trump’s trade policies.