Ontario May Be Paying $20 Million a Year to Store Unsold American Alcohol

Maker’s Mark whisky on display in a retail store in Edmonton, Canada, on Feb. 4, 2025. (Photo: Artur Widak/NurPhoto via AP)

American alcohol has been unavailable on Ontario liquor store shelves for well over a year, and experts say that the boycott may be costing local taxpayers as much as $20 million.

Michael Armstrong, an associate professor at Brock University in Ontario, Canada, told CBC News that his province has shelved around $79.1 million worth of U.S. alcohol. Factoring in warehousing, insurance and security, Armstrong says Ontario is likely paying around a quarter of that just to keep bottles out of liquor stores.

“We’re willing to spend $20 million a year to not sell your booze,” Armstrong told CBC. “Is that worthwhile? I have no way to judge that.”

The Liquor Control Board of Ontario has not confirmed the $79.1 million figure nor the estimated $20 million cost of storage. Other numbers, however, suggest that these estimates may be in the lower end of the ballpark. Ontario imported roughly $965 million worth of American booze per year prior to its current boycott. Though the LCBO has remained tight-lipped, it confirmed in March that roughly $2 million worth of booze has expired since March 2025, mostly including beer, ready-to-drink beverages and wine.

Between March and February 2025, eight of Canada’s ten provinces issued partial or full bans on American-made alcohol in response to the Trump administration’s tariff threats. Ontario was one of the few to announce a blanket prohibition. Provinces like British Columbia announced a ban on alcohol produced in Republican-voting “red states,” while others targeted symbolically American brands like Bud Light, Jack Daniel’s and White Claw.

According to the Distilled Spirits Council of the United States, the move precipitated a 85% drop in American alcohol exports to Canada. Though some provinces have since rescinded their bans, heavy hitters like Ontario have remained steadfast. The state-owned LCBO is one of the largest buyers of alcohol worldwide, and is reported to have grossed $7.37 billion in 2025.

Negotiations have ground to a standstill over the past few months. At a news conference in April, Canadian Prime Minister Mark Carney said that the alcohol ban could end “quickly,” if only the Trump administration repealed its current mix of tariffs.

“You know what’s an irritant? A 50% tariff on steel and aluminum, 25% on automobiles, all of the tariffs on forest products. Those are more than irritants. Those are violations of our trade deal, OK?” Carney said. “We’re looking to negotiate something mutually agreeable, and there will be adjustments there when we make progress on that.”