U.S. alcohol ban could result in short term gain, long term pain, Ontario brewers say

Ontario craft brewers say halting the purchase of American booze by the LCBO would have mixed implications.

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It's the latest counter measure tabled by Ontario Premier Doug Ford, who is caught up in a war of words with incoming U.S. president Donald Trump.

Trump has threatened to impose a 25 percent tariff on Canadian goods upon taking office in January. In retaliation, Ford has said Ontario would stop its purchase of American alcohol.

"We'll use every tool in our toolbox, as we put a tariff on bourbon last time. The LCBO is the largest purchasers of alcohol in the entire world. But I'd prefer not to do any of this," Ford said Friday.

Earlier in the week, Ontario's premier threatened to pull the plug on the electricity supply that powers 1.5-million homes in New York, Michigan and Wisconsin.

Ahead of a celebratory time for Christmas and New Years, the lack of American products on shelves would mean good business for Ontario brewers.

"In the short term it could be really beneficial to have no American alcohol on the shelves, that would be really great for Ontario craft brewers in the short term," says Whitewater Brewing owner Chris Thompson.

But the Ottawa Valley-based brewer fears that if there is a trade war between Ontario and the United States, it could mean higher prices for everyone involved.

"With impending tariffs, with certainty, it's going to increase our costs to produce the products. Our aluminum costs are going to increase, which means a can of beer is going to increase and ultimately that hits the consumer more than anyone," Thompon said.

Ontario drinkers don't seem to mind missing out on the American products and appreciate the stance Ford is taking with the incoming president.

"I'm not that fussy, I like Ontario wines," said Darlene Kitty, who was stocking up for Christmas at the Renfrew, Ont. LCBO.

"I think we have to advocate for our own, whether it's lumber or alcohol or groceries or whatever."

"[Ford] is making a voice. You know, here I am, and this is Ontario, and we're going to protect. I think Donald Trump is just blowing wind myself," said LCBO customer Garry Brousseau.

On Friday, Ford was optimistic a deal could be reached before threats turn into action.

Thompson is hopeful the only tension that bubbles over is that of the beer in his pint glasses.

"Our whole supply chain relies on a really symbiotic relationship between Canada and the U.S," he said.