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.”
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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’.”
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Ontario has been hard hit by the U.S. tariffs, which have contributed to the province’s unemployment rate rising to 7.8 per cent, where the Financial Accountability Office projects it will remain for much of 2026.
The finance minister said the province will continue to provide targeted aid to sectors impacted by tariffs through its $5-billion Protect Ontario Fund. Opposition MPPs have said that funding has flowed too slowly, and a renewed push to help the unemployed in the province is needed in 2026.
Bethlenfalvy wouldn’t say if the government is open to additional measures like purchasing equity in companies to help them survive, as the province and federal government did during the 2009 financial crisis with the automakers.
“I don’t want to speculate, but what I will say is: We’re there for the workers, we’re there for the companies, we’re going to do what we can.”
He also defended a $100 million loan the province — paired with a $400 million federal loan — provided Algoma Steel in September to help keep the company afloat. Despite that $500 million, the company announced last month that it was laying off 1,000 workers.
“We’re going to do what we can, a good example of that is Algoma,” Bethlenfalvy said.
“We put up $100 million in … to support conversion to the electric arc furnace that they have up there, trying to save as many jobs as we can.”
The minister also defended his government’s rising debt load. He pushed back against critics who say the growth in Ontario’s net debt since the PC’s came to power in 2018 — from $332 billion to a projected $460 billion this year — is not fiscally responsible.
“They’re dead wrong, and they don’t know math, and they don’t know how the markets look at our fiscal situation,” Bethlenfalvy said.
“The fact of the matter is, most of that money is going into building infrastructure, subways, hospitals. They’re going to be around a lot longer than you and I; these are good long-term assets.”
Bethlenfalvy also defended the controversial Skills Development Fund, which has been the subject of controversy for the government for much of the fall.
In early October, Auditor General Shelley Spence issued a special report with damning findings on how $1.3 billion in the fund was awarded. Calling the process “troubling,” she said Ontario has not been fair or transparent or accountable when it comes to evaluating applications.
And late last month, Integrity Commissioner Cathryn Motherwell said she will investigate Labour Minister David Piccini’s handling of the fund to determine if he violated ethics rules when he administered the program.
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Bethlenfalvy said the fund provides important training for workers and called it “indispensable.”
“There’s always more that we can do, continuous improvement,” he said. “The auditor general looked at that and said, ‘here’s some ways you can improve that.’ We’ve accepted all those recommendations.”
