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Ontario Threatens US Booze Ban if Trump Imposes Tariffs Against Canada

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Ontario
Ontario Premier Doug Ford speaks to members of the media as mayors from selected municipalities and government ministers look on the Queen's Park Legislature in Toronto on Thursday Dec. 12, 2024. (Photo: Chris Young/The Canadian Press via AP)
A war of words between Ontario Premier Doug Ford and President-elect Donald Trump has placed the fate of American booze in its sights. On Friday, Ford threatened to target U.S.-made alcohol in Canada's most populous province if Trump follows through on his 25% tariff proposal. The announcement came days after Ford said that he'd consider restricting electricity exports to Michigan, New York and Minnesota.
"We'll use every tool in our toolbox, as we put a tariff on bourbon last time. The LCBO is one of the largest purchasers of alcohol in the entire world. But I'd prefer not to do any of this," Ford said during a press conference on Friday.
The Liquor Control Board of Ontario is responsible for distributing alcohol to nearly 40% of Canada's population. The government enterprise has a hand in every legal retailer in the state, operating 669 stores in addition to supplying alcohol to nearly 400 convenience outlets and almost 450 groceries. The LCBO's gross revenue totaled over $7.4 billion in 2023 alone. According to an anonymous senior official interviewed by AP News, Ford may restrict the LCBO from purchasing U.S.-made alcohol, amounting to a defacto ban within the state. It's the latest in a tit-for-tat over Trump's much-discussed tariff proposal against Canada and Mexico. Earlier this month, the President-elect said on Truth Social that tariffs could help stop the flow of "migrants and fentanyl" coming across both borders into the U.S. If enacted, the tariffs would take a toll not only on Canadian oil, minerals and auto parts but also popular liquor brands like Crown Royal and Windsor Blended Whisky. In addition to banning alcohol, officials in the Ford government say they may restrict the export of minerals necessary for electric vehicle batteries. The province has also floated the idea of ending energy exports to the U.S. Electricity provided by Ontario reportedly powered 1.5 million homes in Michigan, New York and Minnesota throughout 2023. Trump shrugged off the threat when asked by CNBC on Thursday.
“That’s OK if he does that. That’s fine,” Trump said. "The United States is subsidizing Canada and we shouldn’t have to do that. And we have a great relationship. I have so many friends in Canada, but we shouldn’t have to subsidize a country.”
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