Ontario Faces Rising Costs Due to Expired U.S. Booze Amid Trade Dispute
Ontario’s liquor stores have been grappling with the aftermath of removing American alcohol from their shelves in response to the trade war initiated by U.S. President Donald Trump. As a result, the province is now confronted with the challenge of managing expired liquor stock and increasing storage expenses.
The Liquor Control Board of Ontario (LCBO) has revealed that the cost of storing U.S.-made liquor, including popular Kentucky bourbon, has soared to $8 million. This financial burden is a growing concern for business analysts who are closely monitoring the situation.
Michael Armstrong, a professor at Brock University’s Goodman School of Business, highlighted the financial implications: “Every month of this ongoing situation means nearly $1 million in additional costs, eating into the LCBO’s profits and, ultimately, taxpayers’ money.”
Unfortunately, a substantial portion of the stored U.S. products has exceeded its shelf life. Approximately $2.6 million worth of American alcohol held by Ontario reached its expiration date by the end of March 2026, pushing the total expense of the trade retaliation to over $10 million.
Despite these challenges, the LCBO stated that the majority, around 97%, of the stored products remain in good condition and are within their normal shelf life. Notably, wines and spirits constitute a significant part of the stock, with spirits remaining safe for consumption for up to a decade.
The LCBO affirmed its commitment to maintaining its storage standards for U.S. products and continuously assessing the situation in collaboration with the government. However, Armstrong suggested a more pragmatic approach: “It would benefit provincial taxpayers to sell off the existing inventory rather than incurring nearly $1 million monthly just for storage.”
In response, Finance Minister Peter Bethlenfalvy’s office reiterated that the U.S. liquor would remain off the shelves until tariffs are lifted.