Trade war: Ontario stops selling US liquor after Trump's tariffs

The Canada-U.S. trade dispute extends all the way to liquor store aisles in Ontario. The province's Liquor Control Board (LCBO) has begun to recall U.S.-origin spirits in response to tariffs imposed by the Donald Trump administration.

Canada's retaliation for tariffs

The decision follows the entry into force of a 25% tariff on Canadian products imported into the United States. In response, Canadian Prime Minister Justin Trudeau announced a similar hike on U.S. goods, calling Trump's policy "dumb."

Doug Ford, premier of Ontario, was even more forceful and directly ordered the LCBO to stop selling U.S.-made liquor. "We have no choice," Ford said, acknowledging that this move is in direct response to Trump's decision and that he knows it will affect U.S. businesses.

Impact on industry and trade

The decision by Ontario, a province bordering five U.S. states (Michigan, Minnesota, New York, Ohio and Pennsylvania), directly affects Kentucky bourbon producers, responsible for 95% of the world's production of this beverage.

The blow did not take long to generate reactions. Eric Gregory, president of the Kentucky Distillers Association, warned that the Canadian retaliation will have "far-reaching consequences," harming everything from farmers to bartenders. "Retaliatory measures against Bourbon harm these markets and jeopardize growth for years to come," he said.

Meanwhile, the LCBO's website was modified to inform consumers about the move, ensuring its in-store service would not be affected. The entity has recommended that customers explore locally produced alternatives or those imported from other countries.

Trump warns of a possible tariff escalation

Donald Trump warned that he could stiffen trade tariffs even further if Canada decides to retaliate. In a message to Prime Minister Justin Trudeau, the president made clear that any attempt at a Canadian response would be punished with even higher tariffs. "If you respond to a US tariff, our reciprocal tariffs will immediately increase in the same proportion," Trump wrote, without specifying how that new round of measures would be implemented.