The ongoing trade tussle between the United States and Canada, sparked by President Trump’s tariffs on Canadian goods, is poised to shake up North America’s drinks market.
Ontario’s Liquor Control Board (LCBO), which typically stocks nearly £570 million (CA$1 billion) of American-made beverages each year, has begun removing US products in retaliation against Washington’s 25 per cent tariffs on Canadian imports.
According to Melissa Thomas, Head of the Canada Desk at audit, tax and advisory firm Blick Rothenberg, this development offers British brewers and distillers a prime chance to break into a lucrative segment of the Canadian market. As the LCBO controls the wholesale of alcohol in Ontario, its ban effectively halts American beer, wine and spirits from reaching most local restaurants, retailers and bars.
Even if Canadian producers try to step in, Thomas notes that US tariffs on steel and aluminium may undermine their ability to bridge the gap. Meanwhile, US brands like Californian wines, Kentucky whiskies and Tennessee bourbons are suddenly seeking fresh export destinations, having lost a key outlet north of the border.
For British producers, the timing could not be better. Given Canada’s current “anti-US” sentiment, consumers may be more receptive to a Scottish whisky, sparkling wine from the South Downs or a Kentish bitter on store shelves. Over in the United States, producers shut out by Canada may also see the UK as a promising alternative, thanks to a historically close trading relationship and Britain’s longstanding role as a gateway to European markets.