Ontario, Canada – Bacardi rum, previously removed from shelves at the Liquor Control Board of Ontario (LCBO), is now back in stores following a shift in policy by the Ford administration. The rum had been pulled in March along with other American-made spirits as part of a broader decision to stop selling U.S.-made products at the LCBO due to a retaliatory tariff dispute.
Background on the Situation
Bacardi’s 1.5-liter bottles, labeled as “Puerto Rican Rum Blend,” but with the additional note that they are bottled at the Bacardi Bottling Company in Jacksonville, Florida, had caused confusion. While Puerto Rico is a U.S. territory, it is not considered a state, prompting questions regarding the rum’s eligibility under the LCBO’s guidelines.
The LCBO, in response to inquiries, clarified that the country of origin listed on a product is where the product was made. Bottling in another location does not alter this classification. Therefore, products made in the United States are subject to the restrictions, and as a result, Bacardi and other U.S.-made liquors were temporarily removed from sale.
Tariff Exemption for U.S. Territories
The Canada Border Services Agency (CBSA), however, has pointed out that the tariff exemption applies to goods originating from U.S. territories. This includes places like Puerto Rico, Guam, and the U.S. Virgin Islands, which were not subject to the retaliatory tariff levied on U.S.-made products. This exemption has now been factored into the LCBO’s decision to allow the rum back on shelves.
Political Reaction and Criticism
The decision has prompted mixed reactions from various political figures. Ontario NDP Leader Marit Stiles called the move “consistent with this government’s lack of consistency in responding to tariff threats.” She supported the removal of U.S. alcohol from LCBO shelves but expressed concern about the broader implications of the policy, specifically the potential resentment it could cause in the United States.
LCBO’s Role and U.S. Imports
The LCBO is responsible for the importation and distribution of all alcohol in Ontario, purchasing around $965 million worth of alcohol each year, including more than 3,600 products from the United States. The LCBO serves as the primary distributor of alcohol in the province, a crucial role in the province’s alcohol distribution system.
Looking Forward
With the rum now back on shelves, the situation highlights ongoing tensions surrounding the tariff dispute and raises questions about how trade policies affect consumer access to certain products. The LCBO has provided clarification, but as political leaders weigh in, the matter could continue to spark debate over the long-term implications of these decisions for trade relations and consumer choice.
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