Ontario’s short-lived energy surcharge may be on hold as Canada and the United States probe for a breakthrough in their tariff war but American alcohol is not yet returning to the shelves of the LCBO.
On March 4, Ontario Premier Doug Ford ordered the LCBO to remove U.S.-made alcohol from its stores and wholesale catalogue as part of a local tariff response package.
He said the move would remain in place until there were “zero tariffs” on Canadian exports to the United States, and underscored that neither pauses nor targeted relief would move the dial.
That stance softened somewhat on Tuesday when Ford paused a surcharge he introduced on Ontario energy sold to the United States. He said the move was a show of goodwill when the Trump administration offered the “olive branch” of a meeting at the White House.
Alcohol at the LCBO, however, will remain off the shelves until the entire tariff dispute is solved, the premier’s office confirmed to Global News.
Get breaking National news
For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.
The financial impact of the prohibition on U.S. booze remains unclear.
The Ontario government estimates that just under $1 billion of U.S. alcohol was sold by the LCBO last year, across 3,600 different products.
Roughly 48 per cent of those sales was American liquor, of which the LCBO sold 22 million litres last year for $461 million. Wine made up around 42 per cent of the total with 21 million litres sold at $408 million.
Just $7 million worth of U.S. beer was sold by the LCBO last year, according to figures from the LCBO, while the remainder includes direct orders for some retailers and pre-made ready-to drinks.
After American alcohol was wiped from the LCBO, the CEO of Jack Daniels said removing its products from the shelves of stores in Canada and Ontario was “worse” than a tariff — but that Canada accounted for around one per cent of its total sales.
Ford predicted Friday the move would hurt alcohol-related jobs in the United States.
“They’re going to have plants shut down because we’re holding off — which is unfortunate,” the premier said.
Ford said regardless of the economic damage the move does to the United States, it was starting a conversation among voters.
“You think, is alcohol going to make a difference? We talk in politics (about) kitchen table issues. And down there, it’s a massive kitchen table issue.”
Ford travels to Washington, D.C., on Thursday along with federal Finance Minister Dominic LeBlanc for a tariff meeting at the White House.
© 2025 Global News, a division of Corus Entertainment Inc.