Ontario will hold firm on U.S. booze ban at LCBO, says finance minister

Ontario’s finance minister is vowing to hold firm on a U.S. booze ban in the LCBO, even as American representatives say the irritant poses a barrier to trade talks with President Donald Trump’s administration.

Peter Bethlenfalvy made the remarks in a wide-ranging year-end interview with CBC News. The finance minister oversees the arms-length LCBO on behalf of Premier Doug Ford's government and issued the directive to the agency in early 2025 to pull U.S. booze off of store shelves in retaliation for the tariffs introduced by Trump. 

It’s a move the government stands by, he says. Asked if full removal of the tariffs was the only condition that would see a U.S. booze boycott lifted in Ontario, he said yes.

“100 per cent," Bethlenfalvy said.

"This is something we've sent a very clear signal (on). This is something that we can do. And look, it's not something we want to do, but we've been very clear about that since day one.” 

Dropping provincial boycotts is part of a longer list of conditions U.S. trade representative Jamieson Greer said last month that Canada must meet in order to extend the Canada-U.S.-Mexico agreement (CUSMA).

Pete Hoekstra, the U.S. ambassador to Canada, has said the ban, and a decline in Canadian tourism, are "why the president and some of his team referred to Canada as being mean and nasty to deal with, OK, because of some of those steps."

Asked why he thinks the move has become such a significant irritant to the White House, Bethlenfalvy wouldn’t speculate. 

“Well, we're irritated about a lot of things here,” he said. “You know, a 50 per cent tariff on steel, on aluminum, on the auto sector, on lumber. We're great friends and allies, so we need to sit down and get a deal that's good for both the United States and Canada.”

The alcohol ban has been in place since March with $80 million now sitting in an LCBO warehouse. Ontario’s Liberal Party urged Premier Doug Ford to sell off the liquor ahead of the holidays to benefit charity, something the PC government has seemed hesitant to pursue.

Bethlenfalvy said the booze ban hasn't been all bad for Ontarians. It has provided more shelf space for local producers, and they’re reaping the benefits.

“If there's a silver lining, it’s that Ontario growers and products have been booming, 79 per cent growth in VQA Ontario wines,  33 per cent in all types of craft beer and Ontario-based products,” he said.

Bethlenfalvy said in the year ahead the government will be keenly focused on the outcome of the CUSMA renegotiations, which are expected to start in 2026. He struck a tone of solidarity with the federal team that will conduct the talks.

“We want certainty, so everyone wants a deal sooner rather than later,” he said. “But we support the prime minister in saying, 'I’ve got to get a good deal, because this is a long-term deal'.”