An LCBO worker rearranges items inside the Union Station store in Toronto on Tuesday, March 4, 2025. The Canadian Press
Ontario is taking strong action against U.S. tariffs by removing American alcohol from its liquor stores, canceling a major contract with Elon Musk’s Starlink, and banning U.S. companies from bidding on public contracts. Premier Doug Ford announced these measures in response to new tariffs imposed by the U.S. government on Canadian goods.
On Tuesday at midnight, the U.S. enacted high tariffs on Canadian imports. In response, Ford ordered the Liquor Control Board of Ontario (LCBO) to remove all U.S. alcoholic products from its stores and website. The LCBO, one of the largest alcohol buyers in the world, temporarily took its website offline to erase American-made products from its inventory.
Ford said the ban affects about 3,600 U.S. brands from 36 states. He noted that restaurants, bars, and other retailers in Ontario would no longer be able to restock these products. “This will hurt American producers in a big way,” Ford stated, adding that the alcohol would be stored and resold if the tariffs are lifted.
The premier also announced the cancellation of a $100-million deal with Musk’s SpaceX company to provide Starlink satellite internet to remote areas of northern Ontario. Ford had previously threatened to cancel the deal but held off when no tariffs were introduced. Now that the tariffs are in place, he is following through on his warning.
“If they sue us, so be it,” Ford said. “We’re going to hit them where it hurts until we get a fair deal.”
Ford also took a direct shot at Musk, noting that the billionaire attended Queen’s University in Ontario. “It’s ironic that he got his education here and now he’s attacking us,” he remarked.
In addition to banning U.S. alcohol and canceling the Starlink deal, Ontario will also block American companies from bidding on government projects. Ford said his team is reviewing existing contracts to see which ones can be terminated.
He encouraged local governments to follow Ontario’s lead, mentioning that Brampton has already taken similar action. Other cities, including Toronto and Mississauga, are considering changing their policies as well.
“We won’t give contracts to companies that support economic attacks on Ontario,” Ford stated. “We’re ready for a long fight. If needed, we’ll impose surcharges on critical minerals and electricity that we supply to the U.S.”
The opposition New Democratic Party (NDP) leader, Marit Stiles, called for a united approach. She urged Ford to recall the legislature so all parties could work together. “Some of what Ford said today, I agree with,” Stiles noted. “But I want to see stronger protections for Canadian-made goods.”
Ford also emphasized the need to reduce Ontario’s dependence on the U.S. He plans to fast-track infrastructure projects, including an all-season road to the Ring of Fire, a mineral-rich region in northern Ontario.
Additionally, he announced plans to impose a 25% surcharge on electricity exported to 1.5 million Americans in multiple states. If tariffs remain in place past April, Ford warned that Ontario might cut off power entirely.
The trade war began when the U.S. imposed tariffs of 25% on Canadian goods, with a 10% tax on energy. Industries across Ontario, including homebuilders, fear long-term economic damage if the dispute continues.
