Ontario Premier Doug Ford has suggested leveraging the province’s powerful liquor control board to counter potential tariffs from the United States, marking an escalation in Canada-US trade tensions.
Doug Ford, leader of Canada’s most populous province, said earlier this week that Ontario could halt electricity exports to US states such as Michigan, New York, and Minnesota if tariffs promised by former US President Donald Trump materialise. Ford is now also exploring the possibility of instructing the Liquor Control Board of Ontario (LCBO) – the largest alcohol purchaser globally, with annual revenues exceeding C$7 billion – to stop buying American-made liquor products.
Trump, citing concerns over border security and economic imbalances, appeared undeterred by Ford’s warnings. Speaking to CNBC News, Trump alleged the United States is effectively ‘subsidizing’ Canada by over $100 billion annually, a claim he did not substantiate. Despite claiming to have so many friends in Canada, he reiterated his belief that the US should not bear such financial responsibilities.
Ford responded forcefully, comparing the tariffs to a family member stabbing you right in the heart. He emphasised that Ontario would use all available tools to protect its citizens, warning, “We’re sending a message to the US … you come and attack Ontario, you attack the livelihoods of people in Ontario and Canadians, we are going to use every tool in our toolbox to defend Ontarians and Canadians. Let’s hope it never comes to that.”
Ontario’s government is also considering restricting exports of critical minerals vital for electric vehicle batteries, adding another layer to the brewing trade conflict. However, Ford stressed that cutting electricity exports remains a ‘last resort’ for the province, which heavily relies on its trade relationship with the United States.
The proposed measures have sparked divisions among provincial leaders. Alberta Premier Danielle Smith rejected Ford’s confrontational stance, asserting that her province would not cut oil and gas exports to the United States. Diplomacy, not threats, she said, should guide Canada’s response to the standoff.
Sales of Canadian energy products to the United States, including oil, gas, and electricity, reached roughly C$170 billion last year, underlining the significance of this trade relationship. While other premiers have remained cautious, Newfoundland and Labrador Premier Andrew Furey admitted preparations for potential retaliation. “We hope it is just bluster,” he said. “We’re preparing as if it is not.”
The LCBO’s significant purchasing power, serving a population of 15 million, presents a formidable tool for Ontario in trade negotiations. Established in 1927, the board operates as the province’s primary alcohol retailer, and a boycott of American products could ripple across the US liquor industry.
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