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The Liquor Control Board of Ontario (LCBO) is removing alcohol from the U.S. from its shelves after the Trump administration’s tariffs on Canada and Mexico went into effect on Tuesday at midnight.
The president imposed tariffs of 25 percent on Canadian goods, as well as a 10 percent tariff on energy.
Ontario put in place a number of measures that it was close to enacting a few weeks ago, when the Trump White House came close to taking action on its tariff plans the first time.
Doug Ford, the premier of Ontario, ordered the LCBO to remove U.S. alcohol from its shelves and catalogues. The regional alcohol agency is believed to be the largest alcohol buyer in the world, according to Global News. Its website went offline temporarily on Tuesday to remove the U.S. products.
Each year, Ontario imports $965 million of alcohol and previously had 3,600 U.S. products from 36 states for sale.
“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 Tuesday. “This is an enormous hit to the American producers.”
The premier said the alcohol would be put into storage and sold at a later time if the tariffs are scrapped.
This comes as the CEO of Brown Forman, the manufacturer of Jack Daniel’s, said Wednesday that Canadian provinces removing American booze from its shelves is “worse than a tariff.”
Lawson Whiting said it was a “disproportionate response” to Trump’s tariffs.
“I mean, that’s worse than a tariff, because it’s literally taking your sales away, (and) completely removing our products from the shelves,” said Whiting during a post-earnings call, according to Reuters.
On Tuesday, Canada put in place 25 percent tariffs on goods from the U.S., including booze. But Whiting also said that Canadian sales only account for one percent of their total sales. He added that the company would keep an eye on what happens in Mexico. Its annual report states that Mexican sales made up seven percent of its total last year.
Whiting shared his concern regarding the “continued uncertainty and headwinds in the external environment,” but added that he was confident about the company’s performance.
Ford appeared on ABC News on Wednesday, calling Trump’s tariff against Canada the “craziest idea” which “caught everyone off guard.”
In addition to removing American booze from Canadian shelves, Ford said he would enact a 25 percent export tax on electricity for homes in the U.S.
“That’s the last thing I want to do. I want to put more alcohol on the shelves. I want to give you more electricity. I want to do everything I can to have a great relationship with our closest friends that we absolutely love,” said Ford.
On Tuesday, Ford said his provincial government would end a contract with Starlink, the satellite internet service provider operated by Elon Musk.
“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,” said Ford. “We have to retaliate—as much as we don’t want to—to our closest friends and allies.”
“We look at the U.S. as a family member,” he added. “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.”
