Ontario’s finance minister is committed to maintaining the ban on American alcohol in the LCBO, despite concerns raised by U.S. officials about its impact on trade negotiations with the Trump administration. Peter Bethlenfalvy reiterated the government’s decision to remove U.S. alcohol from store shelves in response to tariffs imposed by the U.S. president in early 2025.
Bethlenfalvy emphasized that the condition for lifting the boycott is the complete removal of the tariffs. He stated that the government has been clear about this stance from the beginning and that it is not a measure they take lightly.
The U.S. has called for provinces to end their boycotts as part of the conditions outlined by U.S. trade representative Jamieson Greer to extend the Canada-U.S.-Mexico agreement. The ban on American alcohol, along with a decline in Canadian tourism, has been cited as reasons for strained relations between the two countries.
The finance minister highlighted the positive impact of the ban on local Ontario producers, noting significant growth in sales of VQA Ontario wines and craft beer. Premier Doug Ford expressed pride in Ontario’s wine industry and hinted at removing Crown Royal from LCBO shelves following the closure of its bottling facility in Amherstburg.
As negotiations for the CUSMA renewal are set to begin in 2026, Bethlenfalvy stressed the importance of reaching a mutually beneficial deal for both countries. The government is closely monitoring the situation and aims to support the prime minister in securing a favorable agreement.
Ontario’s economy has been affected by the U.S. tariffs, leading to a rise in the unemployment rate. The province has allocated funds from the $5-billion Protect Ontario Fund to support sectors impacted by the tariffs, although there have been calls for faster disbursement to aid those affected.
Bethlenfalvy defended the government’s actions to support struggling companies, citing the example of Algoma Steel, which received a substantial loan to sustain its operations. He also addressed criticisms of Ontario’s increasing debt, arguing that investments in infrastructure are essential for the province’s long-term growth.
The finance minister also addressed controversies surrounding the Skills Development Fund, emphasizing the importance of training programs for workers and the government’s commitment to improving transparency and accountability in the allocation of funds.