American distilleries ‘devastated’ by collapse of trade talks as they face hundreds of millions in lost sales - Toronto Star

Escalating trade war dashes hopes of ending the 18-month provincial liquor boycott.

The LCBO removed U.S. products off its shelves on the first day of the trade war instigated by Donald Trump’s administration. 

For a few days, Chris Swonger saw some light at the end of the tunnel.

The head of the association representing U.S. distillers was optimistic a trade deal with Canada was at hand in mid-August, and that American liquor, wine and beer would soon be back on the shelves at the LCBO and other provincial monopolies.

Then came word that Prime Minister Mark Carney was pulling Canadian negotiators out of last-minute talks, and a tentative deal was off. So, too, was any momentum towards ending a boycott of U.S. products by most provincial monopolies which has been in place for 18 months.

That late night announcement Aug. 21 was a crushing disappointment for Swonger and his members.

“They’re just devastated. We’d built up excitement. We were hearing provinces were getting ready to stock our products again,” said Swonger, CEO of the Distilled Spirits Council of the United States. News that the talks were off came via Carney’s social media post, Swonger added. “We found out just like everybody else.”

An economist estimates thousands of workers in Ontario face growing uncertainty as Trump’s new 50% U.S. tariff ripples through supply chains.