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Ontario Premier Doug Ford has vowed to keep U.S. alcohol off LCBO shelves until President Donald Trump fully removes tariffs on Canadian goods.
As of Tuesday, all American-made alcohol has been pulled from LCBO stores and its online catalogue in what Ford called the “first round of retaliation” against the Trump administration’s trade measures.
Ford has singled out Kentucky—home to a billion-dollar bourbon industry—as a primary target of Ontario’s countermeasures.
“The Governor of Kentucky said, ‘Don’t touch our bourbon,’ and I said, ‘Governor, that’s the first thing we’re going after,’” Ford said in a recent speech. “We’re the largest buyer of Kentucky bourbon in the world—they’re done, they’re gone.”
Backlash from the U.S.
Kentucky Governor Andy Beshear, speaking on CTV News Channel’s Power Play, warned that the trade war will cause “significant harm” to businesses, including those in his state’s bourbon industry.
“These tariffs, imposed by one individual, will drive up prices on gas, groceries, and housing across the U.S.,” Beshear said, calling the levies a betrayal by the Trump administration.
Canada has already imposed tariffs on $30 billion worth of U.S. goods but has delayed a second wave—valued at $125 billion—until April 2, following Trump’s temporary exemption of certain goods under an existing free trade agreement.
Impact on the Bourbon Industry
The current tariffs include roughly $589 million in American spirits and other products. Given that Canada is Kentucky’s largest export market—accounting for $9.3 billion in shipments in 2024—these measures are expected to hit hard.
Eric Gregory, President of the Kentucky Distillers’ Association (KDA), warned of the widespread consequences.
“The return of retaliatory tariffs on American whiskey will have far-reaching effects across Kentucky, home to 95% of the world’s bourbon,” Gregory said in a statement. “This puts jobs at risk—from corn farmers and truckers to distillery workers, barrel makers, bartenders, and servers.”
Cal Bricker, President of Spirits Canada, emphasized that bourbon is a legally protected product that can only be made in the U.S.
“That niche in the bourbon market is highly specialized,” Bricker told CTV News Toronto. “No one else can legally produce and sell it under the bourbon name.”
Victor Yarbrough, co-founder of Brough Brothers Distillery in Louisville, Kentucky, said the tariffs have already disrupted business. His company was on the verge of signing a deal with Alcool NB Liquor—New Brunswick’s main liquor retailer—when the trade restrictions halted negotiations.
“The uncertainty surrounding tariffs has made it difficult to plan,” Yarbrough said in an email statement. “The removal of American-made liquor from Canadian shelves is a major blow, and we hope for a resolution soon. At the end of the day, no one wins when family feuds.”
