This decision comes in response to the latest round of tariffs imposed by former President Donald Trump, set to take effect this week.
According to The Independent, the Liquor Control Board of Ontario (LCBO), which oversees all alcohol sales to restaurants, bars, and stores in the province, has been directed to cease the sale of American products. "Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits, and seltzers. Not anymore. There’s never been a better time to choose an amazing Ontario-made or Canadian-made product," Ford declared in a statement. The ban is set to commence on Tuesday.
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The directive further stipulates that stores will not be permitted to restock American alcohol products. This move follows closely on the heels of Canadian Prime Minister Justin Trudeau's decision to impose a 25 percent tariff on U.S. goods.
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American alcohol represents a significant portion of the Canadian market, with annual sales amounting to $965 million, as reported by CNBC. The U.S. is the largest exporter of hard alcohol to Canada.
In a statement to CNBC, the LCBO confirmed that the ban on all U.S. alcohol products is "indefinite," and is "part of Ontario's response strategy to the imposed U.S. tariffs on Canadian goods."
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This retaliatory measure has found support in other Canadian provinces as well. Tim Houston, the Premier of Nova Scotia, has indicated that his province will follow Ontario's lead. Similarly, British Columbia's Premier, David Eby, has instructed stores to cease selling alcohol products from "red states." Eby emphasized the importance of standing up to the U.S., stating, "The Americans are bigger, but if we don't stand up for ourselves, they will just keep coming back for more."
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Andrew Furey, the Premier of Newfoundland and Labrador, has also urged his province to stop selling American alcohol, encouraging citizens to opt for Canadian products instead. Quebec’s Finance Minister has also indicated that his province will implement a similar ban on American alcohol, albeit with a potential delay in execution.
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However, not everyone agrees with this course of action. Moshe Lander, an economics professor at Concordia University, told CBC that he believes the booze ban is an overreaction. "Why are we compounding a problem by removing the free will of people to choose what they do and don't like?" he questioned. Lander also noted that much of the American alcohol sold in Canada originates from states like California, Oregon, and Washington, which are predominantly blue and have leadership that opposes Donald Trump.
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This unfolding situation underscores the complexities of international trade relations and the potential for escalating retaliatory measures. It remains to be seen how this ban will impact the Canadian market and whether it will lead to a resolution or further exacerbate the ongoing trade tensions.
