Ontario’s Progressive Conservative government says it will not lift its ban on U.S. alcohol sales at the LCBO until American tariffs on Canadian goods are fully removed. Finance Minister Peter Bethlenfalvy reaffirmed the province’s position in a year end interview with CBC News, despite growing pressure from U.S. officials who argue the boycott is hindering broader trade negotiations.
Bethlenfalvy, who oversees the LCBO on behalf of Premier Doug Ford, said the government has been clear since early 2025 that the ban is a direct response to tariffs imposed by U.S. President Donald Trump. Asked whether Ontario would only lift the boycott once those tariffs are completely removed, the finance minister answered unequivocally in the affirmative. He said the move was not taken lightly but was intended to send a clear signal to Washington.
Since March, millions of dollars worth of U.S. alcohol has remained in storage, with roughly $80 million sitting in LCBO warehouses. Ontario Liberals have urged the government to sell the stock and donate proceeds to charity, particularly during the holiday season, but the Ford government has shown little appetite for that option. The premier has instead emphasized the symbolic value of maintaining the ban as leverage in trade talks. Bethlenfalvy and Ford both argue that the policy has produced unexpected benefits for Ontario producers. According to the finance minister, shelf space freed up by the boycott has helped local businesses, with VQA Ontario wine sales up sharply and significant growth reported among craft beer and other Ontario based products. Ford echoed that message, praising the quality of local wine and highlighting increased visibility for homegrown brands.
Looking ahead, Bethlenfalvy said the province is closely watching the expected CUSMA renegotiations in 2026 and supports the federal government’s approach. Prime Minister Mark Carney has said he will prioritize securing a long term and stable agreement, including protections for supply management. Bethlenfalvy said Ontario wants certainty and is aligned with Ottawa’s push for a deal that supports workers and industry over the long term.
The finance minister also addressed broader economic pressures facing the province. U.S. tariffs have contributed to Ontario’s unemployment rate rising to 7.8 per cent, a level projected to persist through much of 2026. Bethlenfalvy said the government will continue offering targeted support through its $5 billion Protect Ontario Fund, while defending controversial measures such as the $100 million provincial loan to Algoma Steel and the government’s growing debt load.On criticism surrounding the Skills Development Fund, which has faced scrutiny from the auditor general and the integrity commissioner, Bethlenfalvy said the program remains essential for worker training. He acknowledged the need for improvements and said the government has accepted all recommendations aimed at strengthening transparency and accountability. Despite ongoing controversies, the finance minister insisted the province will continue to stand by its core trade strategy, including the LCBO ban, until Ontario sees meaningful relief from U.S. tariffs.