• Ontario, Canada has banned the purchase of alcohol from the United States in response to U.S. tariffs on Canadian goods.
• The Liquor Control Board of Ontario will no longer purchase or distribute alcohol from the U.S., impacting over 3,600 products.
• Kentucky bourbon, a significant export to Canada, is expected to be hit hard by the retaliatory tariffs.

This story has been updated to include a comment from the Kentucky Distillers’ Association and the Distilled Spirits Council of the United States.

In response to the 25% tariffs U.S. President Donald Trump levied on Canada early Tuesday, Ontario, the country’s most populous province has issued an immediate stop purchase and removal of U.S. beverage products.

In an email obtained by the Courier Journal, the Liquor Control Board of Ontario stated “In response to the U.S. government’s imposition of tariffs on Canadian goods, the Ontario government has directed the LCBO to immediately stop the purchase of all U.S. products, and to remove all U.S. products from LCBO retail channels and shelves, including spirits, wine, beer and ready-to-drink and nonalcoholic products.”

This move directly impacts the Kentucky bourbon industry, which expressed concern that imposing tariffs on Canada could lead to widespread negative consequences.

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“At the end of the day, tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry just as these businesses continue their long recovery from the pandemic,” Distilled Spirits Council of the United States President Chris Swonger said in a November statement.

Kentucky has a strong trade relationship with Canada, having exported over $9.3 billion in products, including bourbon and other American whiskey products, to the northern country in 2024, according to a press release from Kentucky Gov. Andy Beshear’s office.

Kentucky Distillers’ Association President Eric Gregory noted that bourbon distilling is a $9 billion industry in the state and supports more than 23,000 jobs across the distilleries, tourism, hospitality, and other industries in the commonwealth, which is home to 95% of the world’s bourbon. This latest action by Canada in response to the U.S. stands to impact these jobs, with Gregory stating it’s the “corn farmers, truckers, distillery workers, barrel makers, bartenders, servers, and the communities and businesses” that will face loss.

“Bourbon jobs are American jobs, and we grow bourbon jobs by opening markets across the globe,” Gregory said. “Retaliatory measures against bourbon harm these markets and jeopardize growth for years to come, including the unjust and disproportionate removal of American spirits from retail shelves and prohibition on new purchases of alcohol from American companies.”

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Major bourbon distillers in Kentucky such as Brown-Forman, which, as one of the leading exporters of U.S. spirits globally, has 55% of its net sales coming from outside the U.S., stand to feel a substantial impact from the tariffs.

Other major Kentucky bourbon companies that are big exporters and could be impacted include Heaven Hill, the maker of Evan Williams; Beam Suntory, which produces Jim Beam and Maker’s Mark products; and Diageo, the owner of Bulleit Bourbon.

“Kentucky’s signature bourbon industry continues to be caught in the crossfire of Donald Trump’s broad, reckless tariffs,” U.S. Representative Morgan McGarvey told the Courier Journal via email. “Canada is Kentucky’s largest trade partner and these tariffs will devastate our state’s economy while making everything more expensive.”

In a Tuesday morning press conference, Canadian Prime Minister Justin Trudeau announced tariffs in response to Trump’s blanket tariffs, which include 25% tariffs against $155 billions of America goods, starting with tariffs on $30 billions of goods immediately with the remaining $125 billions set to take place in 21 days.

Trudeau said, “Your government has chosen to do this to you. Your government has chosen to put American jobs at risk at the thousands of workplaces that succeed because of materials from Canada or consumers in Canada. They’ve chosen to raise costs for American consumers on everyday essential items like grocery and gas and major purchases like cars and homes and everything in between.”

The LCBO is a Crown agency that is operated by the government of Ontario and oversees retail and distribution of alcohol products through the province.

The email goes on to state that LCBO currently lists more than 3,600 products from 35 U.S. states, and all of these products are now facing an indefinite ban.

“While Ontario-based retailers will have the discretion to sell whatever stock they have on hand, they will no longer be able to buy U.S. products from LCBO,” the email continues.

A statement from Swonger with DISCUS said, “It is extremely disheartening to hear that several Canadian provinces are pulling American spirits products off their store shelves. This misguided retaliation will needlessly reduce revenues for the provinces and hurt Canadian consumers, tourists and hospitality businesses. For decades, there have been zero for zero tariffs on spirits trade between the U.S. and Canada. We are the model of fair and reciprocal trade. We urge the U.S. and Canada to work together to reach an agreement that continues to foster a thriving spirits industry between our two countries.”

This story will be updated.

Contact business reporter Olivia Evans at [email protected] or on X, formerly known as Twitter, at @oliviamevans_.