Ontario Premier Doug Ford says his government is taking urgent steps to retaliate against new U.S. tariffs by removing American-made alcohol from Liquor Control Board of Ontario (LCBO) shelves and banning U.S.-based companies from bidding on provincial contracts.
Ford announced the measures today, calling them part of a strong response to what he described as unwarranted moves by U.S. President Donald Trump.
“We could have stayed focused on making Canada and the U.S. the two richest, most secure countries on the planet,” said Ford. “Unfortunately, one man, President Trump, has chosen chaos instead. Now we have no choice but to respond.”
Ford praised Prime Minister Justin Trudeau for imposing federal tariffs on American goods, saying, “They have my full support for a strong and forceful response, tariff for tariff, dollar for dollar.” Ford also urged the federal government to move quickly to provide financial relief to any affected workers and industries, especially those that depend on trade with the United States.
Immediate economic measures
Effective immediately, the LCBO will begin pulling U.S. wines, beers, ciders, seltzers and spirits from store shelves. As Ontario’s sole alcohol wholesaler, the LCBO will also prevent bars, restaurants and other retail channels from restocking products sourced from the United States.
“This is an enormous hit to American producers,” said Ford, noting that annual LCBO sales of American alcohol are nearly $1 billion. “More than 3,600 products from 35 states will be off the shelves.”
Ford said the ban would remain in place until Trump rescinds the tariffs. The premier did not specify if current inventory already in storage would be sold or destroyed, although he said the province will wait to see whether the trade situation improves before making those decisions.
In another move, Ford revealed that all U.S.-based companies are now barred from taking part in government procurement. He said the province and its agencies, which spend about $30 billion on procurement each year, will exclude U.S. bidders. That figure, he added, does not include Ontario’s $200-billion infrastructure plan.
“Our more than $200 billion plan to build infrastructure—plus the $30 billion we spend annually on procurement—will now be off-limits to U.S. firms,” Ford said. “They only have President Trump to blame.”
Threat to critical exports
Looking ahead, Ford said his government is ready to escalate with “every tool in our toolkit,” including surcharges on critical minerals exported to the United States and higher prices for electricity transmitted south of the border. He warned that if more tariffs go into effect, Ontario could place a 25 per cent surcharge on electricity it provides to key U.S. states.
“We will not hesitate to shut off their power as well,” said Ford. “I’m encouraging my fellow premiers to follow suit.”
Ford said letters will go out to every senator, congressional representative and the governors of New York, Michigan and Minnesota to warn them about the possibility of future surcharges if tariffs persist. He called on American lawmakers to stand up against the White House’s tariff policy.
“When Warren Buffett and every other CEO down in the U.S. say this is a disaster, I encourage Congress to pay attention,” Ford said, referring to recent criticism of the tariffs from high-profile American business leaders.
Impact on auto sector
Ford stressed that Ontario’s large automotive industry, which is heavily integrated with U.S. supply chains, is at risk because parts cross the border multiple times before final assembly. He said repeated tariffs could quickly halt production lines on both sides of the border, hurting American and Canadian workers.
“I predict the assembly lines will shut down within 10 days,” said Ford. “The supply chain is so interwoven, and each part could be hit with a 25 per cent tariff multiple times. It’s almost certain the plants will stop if this continues.”
Support for workers
Ford sought to reassure Ontarians worried about job security, saying the province would provide immediate aid to those affected and invest in worker retraining if the trade dispute drags on. He pointed to lessons learned during the pandemic and said that experience will guide Ontario’s assistance efforts.
“We do have a plan,” Ford said. “No different than the pandemic. We’ll be supporting people and companies, and we’re going to diversify our trade.”
He urged a fast-tracking of critical minerals development in Ontario, suggesting the province’s resources could find new markets outside the United States if the trade standoff continues. Ford also spoke of speeding up infrastructure projects to create jobs.
“We need to start building roads, highways, bridges and rail right across the country,” he said. “We should have done some of these projects decades ago. We have to move quickly now.”
“Buy Ontario, buy Canadian”
The premier asked municipalities to join the province’s procurement ban against American businesses. He thanked Brampton Mayor Patrick Brown and leaders of other cities who have already taken similar steps. Ford said the policy should extend to major retailers, urging them to clearly label U.S. products so consumers can decide whether to support Ontario-made or Canadian-made goods instead.
“If they don’t do it, I will legislate it,” said Ford, referring to product labelling. “Put a Canadian flag beside the price for Canadian products, and an American flag beside the price for U.S. products.”
He stressed that Ontario’s fight is not with the American public, whom he credited as allies. Instead, Ford laid responsibility on the White House: “Don’t blame the American people. It’s Donald Trump to be blamed for this.”
Cancelling contract with Starlink
As part of Ontario’s push to sever ties with companies linked to the U.S. administration, Ford announced that the province is cancelling its contract with Starlink, owned by entrepreneur Elon Musk. He described it as a matter of principle, though details on the exact financial penalties associated with ending the contract were not immediately available.
“We won’t award contracts to people who enable and encourage economic attacks on our province and our country,” said Ford. “We’re ripping up Ontario’s contract with Starlink. It’s done.”
When asked about break fees, Ford said he would share that information as soon as it is determined. He accused Musk, who studied for a time in Ontario, of acting against a jurisdiction that once helped him.
“They should be embarrassed he went to Queen’s University,” said Ford. “He should be embarrassed to attack the very people who welcomed him.”
Next steps
Ford confirmed that the LCBO has already halted new orders for U.S. alcohol and will store current American stock until the dispute ends. He emphasized that the province’s move targets states whose elected officials support Trump’s tariff actions. He singled out Kentucky—famed for its bourbon—and noted its U.S. senators as examples of lawmakers who should speak out against the White House.
“I encourage other members of Congress, other senators, other governors, to stand up to Donald Trump,” said Ford. “Because factories are going to be empty, there’s going to be unemployment, inflation is going to hit, and it’s going to hurt the American people.”
Although he acknowledged that the tariffs will also hurt Canadian businesses and families, Ford said he believes Canada and Ontario will overcome these challenges by uniting and diversifying. He urged Canadians to rally around domestic producers, reinforcing his call to “buy Ontario” and “buy Canadian” whenever possible.
“The coming days and weeks will be hard,” he said. “But together, we’re going to stand up for Canada.”
Ford said he will meet with Trudeau later today, along with other premiers, to coordinate provincial and federal responses. He repeated that Ontario did not start this dispute, but is prepared to fight it out as long as necessary.
“We said we would never start a trade and tariff war with the U.S.,” Ford said. “But you better believe we’re ready to win one.”
