Table of Contents
- Background: US Liquor Boycott in Canada
- Provincial Responses to the Shelved Inventory
- Impact on US Liquor Producers and Trade
- Conclusion: Future Outlook for the Boycott
Background: US Liquor Boycott in Canada
In February, Canadian provinces began removing American liquor from retail shelves in response to US tariffs imposed on Canadian goods. This boycott has resulted in millions of dollars worth of unsold alcohol being stockpiled across the country. While the North American Free Trade Agreement has exempted most products from these tariffs, sector-specific levies on metals, lumber, and automotive goods remain, fueling tensions between the two nations.
Canadian provinces operate government-controlled boards that manage alcohol sales, except for Alberta and Saskatchewan, which have fully privatized liquor systems. These boards hold broad authority over which products are imported and sold, giving them the power to enforce such boycotts. As a result, provinces are now faced with a unique dilemma: how to handle unsold US liquor without letting it go to waste.
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Provincial Responses to the Shelved Inventory
Each Canadian province has responded differently to the stockpiled US liquor:
- Alberta and Saskatchewan: Continue selling American alcohol, remaining the only provinces to do so.
- Nova Scotia: Restocked shelves recently, resulting in higher-than-usual sales. The top-selling item has been Kentucky bourbon. Remaining proceeds, estimated at C$4 million, will be donated to Feed Nova Scotia and other local food banks. Nova Scotia will not order more US liquor once current stocks are sold.
- Manitoba: Announced a sale of remaining inventory worth C$17.4 million, with proceeds going to local charities. Municipal Relations Minister Glen Simard emphasized avoiding wastage while supporting good causes.
- British Columbia: Sold its US liquor stock to restaurants and bars instead of retail customers, adopting a unique approach that still supports the hospitality sector.
- Quebec: Initially considered destroying C$300,000 worth of soon-to-expire liquor but later decided to donate it to charity events and hospitality schools. Quebec has a total of C$27 million in shelved American liquor.
- Ontario & Newfoundland and Labrador: Have not disclosed plans for their inventories. Ontario Finance Minister Peter Bethlenfalvy stated that less than C$2 million of stock will soon expire and the province will maintain its boycott until a low-tariff or tariff-free deal with the US is reached.
Overall, provinces are balancing between charitable redistribution, sales to hospitality businesses, and maintaining the political stance of the boycott.
Impact on US Liquor Producers and Trade
The boycott has had significant effects on American liquor producers. Exports to Canada have dropped by an alarming 85%, with sales also declining in other markets such as the UK and EU. Chris Swonger, President and CEO of the Distilled Spirits Council of the United States (DISCUS), described the decline as “very troubling” and highlighted the hope that both nations will resolve trade disputes so American products can return to Canadian shelves.
US Ambassador to Canada Pete Hoekstra has publicly criticized the boycott, citing it as a source of tension between the countries. Meanwhile, Canadian officials maintain that these measures are effective in influencing trade discussions, as seen in statements from British Columbia Premier David Eby.
The liquor boycott began as a response to tariffs under the Trump administration but continues to reflect broader trade issues and policy negotiations. Provinces are strategically managing unsold inventory to mitigate waste while signaling their stance in ongoing trade discussions.
Conclusion: Future Outlook for the Boycott
As Canadian provinces navigate the complexities of the US liquor boycott, approaches vary widely. While Alberta and Saskatchewan maintain sales, others prioritize charity and hospitality redistribution to prevent wastage. Quebec, Nova Scotia, and Manitoba have turned stockpiles into community benefits, creating a positive impact from the boycott.
The ultimate resolution depends on broader trade negotiations between Canada and the US. Until then, provinces will continue balancing economic, social, and political considerations in managing millions of dollars of shelved liquor. For American producers, the hope remains that future agreements will restore access to Canadian markets and alleviate the disruption caused by these ongoing trade tensions.
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By The Morning News Informer— Updated December 9, 2025
