A year after the Ontario government banned U.S. alcohol products from the LCBO due to tariffs, approximately $2 million worth of American liquor is set to expire, while sales of Ontario-made alcohol have significantly increased.
In 2025, following tariffs imposed by the U.S., Ontario Premier Doug Ford ordered the removal of all American alcohol products from the Liquor Control Board of Ontario (LCBO), leading to an estimated $2 million in U.S. liquor going to waste. The decision was made amidst ongoing trade tensions and marked a significant shift in Ontario's liquor sales landscape. Notably, prior to the ban, Ontario had imported around $965 million worth of alcohol from the United States, illustrating the scale of the market that was affected.
In the wake of the ban, the Ontario government reported a notable rise in sales of locally produced alcohol, with an overall increase of approximately 22% and a remarkable 35% jump in craft products. VQA Ontario wines saw an impressive 52% increase in sales, indicating that consumers may have shifted their preferences toward local options as a result of the removal of American products. This shift reflects broader trends in consumer behavior, where there appears to be a growing appetite for supporting local producers amidst adverse economic conditions.
Despite suggestions to auction off the expiring U.S. liquor to benefit food banks—a practice adopted in other areas—the government opted against this approach. Instead, officials reiterated that the ban on U.S. alcohol would remain in place until tariffs were fully rescinded. This stance raises questions about the future of cross-border trade in alcohol and the potential implications for consumer choice in Ontario's liquor market.
