Costco’s foray into Ontario’s alcohol market just hit a snag, courtesy of a tariff showdown between Canada and the U.S. Premier Doug Ford has ordered the LCBO, the province’s alcohol gatekeeper, to ditch all American-made beverages in response to President Trump’s tariffs targeting Canadian exports. That means no more U.S. whiskey, wine, or seltzers on LCBO shelves—a move wiping out $965 million in annual imports from 3,600+ American products.
For Costco, which started selling alcohol in Ontario last fall, the fallout is immediate. As part of the province’s expanded retail rules, the American retail titan—like all grocery and convenience stores—relies on the LCBO for its booze supply. With U.S. products now off-limits for wholesale orders, Costco can only sell what’s left of its American stock before switching to Canadian-made alternatives. The LCBO’s monopoly ensures this ban trickles down to bars, restaurants, and other retailers too, leaving them in the same boat.
While spirits remain an LCBO exclusive (outside distillery shops), the loss of U.S. brands is pushing Ontario to spotlight its own craft beers, wines, and coolers—some of which might surprise shoppers who assumed they were imports. As the tariff war rages on, Costco and its customers are adapting to a distinctly Canadian pour.