TORONTO — Ontario’s finance minister says the province will continue barring U.S. alcohol from LCBO shelves until American tariffs on Canadian goods are fully lifted, despite pressure from U.S. officials who argue the move is hindering trade negotiations.Finance Minister Peter Bethlenfalvy made the comments in a year-end interview with CBC News, reaffirming the Ford government’s position that the alcohol ban remains tied directly to the removal of U.S. tariffs.The province directed the LCBO in early 2025 to pull American alcohol products from stores in response to tariffs imposed by the administration of U.S. President Donald Trump. Bethlenfalvy oversees the Crown corporation on behalf of Premier Doug Ford..Asked whether Ontario would lift the ban without full tariff removal, Bethlenfalvy said it would not.“This is something we’ve sent a very clear signal on,” he said, adding the province views the measure as a legitimate response to trade actions taken by the United States.U.S. officials have raised the issue as a concern in broader trade discussions. U.S. Trade Representative Jamieson Greer said last month that provincial alcohol boycotts are among conditions Canada would need to address to extend the Canada–U.S.–Mexico Agreement. .U.S. Ambassador to Canada Pete Hoekstra has also described the ban as a factor contributing to strained bilateral relations.The alcohol boycott has been in place since March, with approximately $80 million worth of U.S. alcohol currently stored in LCBO warehouses. Ontario’s Liberal Party has urged the government to sell the inventory for charitable purposes, a proposal the Progressive Conservative government has so far declined.Bethlenfalvy said the ban has created additional shelf space for Ontario producers, pointing to growth in local sales. According to the minister, VQA Ontario wine sales have increased by 79%, while craft beer and Ontario-based alcohol products have seen growth of roughly 33%..Looking ahead, Bethlenfalvy said the province is focused on the upcoming renegotiation of CUSMA, expected to begin in 2026, and signalled support for the federal government’s negotiating approach.Ontario has been significantly affected by U.S. tariffs, with the province’s unemployment rate rising to 7.8%. The Financial Accountability Office projects that rate will remain elevated through much of 2026. The province has committed $5 billion through its Protect Ontario Fund to support industries impacted by the trade dispute, though opposition parties have argued the assistance has been slow to reach workers.The finance minister also defended the province’s decision to provide a $100 million loan to Algoma Steel, alongside a $400 million federal loan, to support the company’s transition to electric arc furnace technology. Despite the funding, Algoma announced layoffs of approximately 1,000 workers last month..Bethlenfalvy further pushed back against criticism of Ontario’s rising debt, which has grown from $332 billion in 2018 to a projected $460 billion this year. He said much of the spending is tied to long-term infrastructure projects such as transit and hospital construction.The minister also addressed criticism surrounding Ontario’s Skills Development Fund, following a special report by Auditor General Shelley Spence that found shortcomings in how $1.3 billion in grants were awarded. An investigation by Integrity Commissioner Cathryn Motherwell into the fund’s administration is ongoing.Bethlenfalvy said the government has accepted all of the auditor general’s recommendations and described the fund as an important tool for worker training.
