Ontario businesses express mixed reactions to new U.S. tariffs, alcohol ban

U.S. President Donald Trump signed proclamations Tuesday for Canadian alcohol to be banned as of Sept. 29

Ontario businesses are sharing mixed reactions to the new U.S. tariffs and Canadian alcohol ban imposed Tuesday in the latest escalation to the trade war between the two countries.

Cal Bricker, president and CEO of Spirits Canada, said the move by the U.S. puts "significant pressure" on an industry that he says is already being challenged. About half of the $2 billion in spirits produced in Canada annually is sold to the U.S., he said.

"We're very hopeful that the two sides can return to the table and get some resolution because this isn't helping anybody," he said.

U.S. President Donald Trump signed five proclamations Tuesday, banning Canadian imports of alcohol, motorcycles and other goods like whey products and molasses as of Sept. 29, and slapping 50 per cent tariffs on other products starting next week.

Certain dairy products, paper and wood products, aluminum products, furniture and mattresses will be subject to the 50 per cent levies.

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Canada's retaliatory tariffs on billions of dollars worth of imported American goods came into force earlier Tuesday, a move promised after last month's trade talks fell apart and 50 per cent U.S. tariffs on some Canadian products hit late August.

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Daniel Tisch, president and CEO of the Ontario Chamber of Commerce said Wednesday that while he is calling for a mutual de-escalation to the tariff war, he sees this as a “moment of opportunity” for building local industry and economy.

“If we play our cards right in Canada and continue to make this a more effective place to do business, we’re going to continue to be seen as a beacon of stability in the world.”

But local businesses vary confidence after a turbulent several months.

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Aaron Dobbin, president of Wine Growers Ontario, said the U.S. ban on Canadian alcohol is “what we’ve come to expect” after the August tariffs made their products unaffordable in the U.S.

While Dobbin said the ban on alcohol would potentially further hurt relationships with distributors south of the border, he told CBC Toronto the American market isn’t a big one for them.

A more meaningful change for the industry, he says, is Canadians supporting local businesses.

“Canadians have stood up, and have been supporting Canada and Ontario producers,” he said. “Ontarians are buying Ontario and visiting a lot of staycations in Ontario wine country.”

After the Ontario government told the LCBO to stop selling U.S. products in March 2025 as a response to earlier U.S. tariffs on Canadian goods, sales of wines made from Ontario-grown grapes soared.

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“Once people switch from their favourite products, they tend to stick with what they switch to,” Tisch said. “It’s going to be really hard for American producers to compete in Ontario again.”

“That’s a tragedy for them, but it's good news for the wine industry.”

'I'm hoping we could ride out the storm'

For David Paul Vella, founder and president of family-run Canadian company Crown Cookware, the newest round of tariffs are the “last nail in the coffin.”

He said the last 18 months have been “difficult enough” with his Etobicoke-based company already affected by existing U.S. tariffs on aluminum.

The latest round put "the cork on the bottle, closing everything off,” Vella said Wednesday to CBC Radio's Metro Morning. "Forty per cent of our business to the U.S. in commercial sales is gone.”

“We have customers calling from the U.S. that want to buy our product, but it’s just cost prohibitive in many cases.”

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He said the company had planned to open a branch plant in the U.S. to distribute, but that the plan is “on hold” now. They are now seeking manufacturing plants and countries that supply aluminum in the Middle East.

He said a competitor making custom parts for bakeries has relocated to Buffalo, New York because 90 per cent of their sales is in the U.S.

But relocating isn’t a plan for him — yet.

“We do have our taxes, the cost of our people, and a number of things," he said. “But I’m hoping that we could ride out the storm.”

Eleanor Yuneun Park is a journalist at CBC Toronto. She previously worked as a Content Editor at the Globe & Mail. She has an honours bachelor of arts in English and Religion from the University of Toronto. You can reach her at eleanor.yuneun.park@cbc.ca.

With files from Naama Weingarten, Kirthana Sasitharan, Metro Morning, and News Network.