Ontario Taxpayers Bearing $8 Million Cost to Store Banned U.S. Liquor

Ontario is facing mounting costs after removing U.S.-made liquor from store shelves in retaliation for a trade war led by U.S. President Donald Trump. According to reporting from CityNews Toronto, the Liquor Control Board of Ontario (LCBO) has spent $8 million to store products such as Kentucky bourbon.

Beyond storage fees, the province is losing product to expiration. CityNews Toronto reports that approximately $2.6 million worth of U.S. liquor expired by the end of March 2026, pushing the total cost of the retaliatory strategy above $10 million. The LCBO stated that roughly 97% of the inventory remains in good condition and within its normal shelf-life, noting that spirits can remain safe for consumption for up to a decade.

Michael Armstrong, a professor at Brock University’s Goodman School of Business, told CityNews Toronto that the storage costs amount to nearly $1 million per month. Armstrong noted that these costs reduce the LCBO's profit margins, which ultimately impacts the Provincial Treasury and taxpayers. He suggested that selling the existing inventory would be more beneficial for the treasury than continuing the monthly expenditure.

Despite the costs, the provincial government remains firm. The office of Finance Minister Peter Bethlenfalvy stated that the products will remain off the shelves until tariffs are removed.