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Provinces offload millions in US alcohol amid tariff dispute
Canadian provinces are clearing warehouses of American liquor pulled from shelves over retaliatory tariffs, with some donating proceeds to charity and others selling stock to businesses rather than consumers.
Charity sales underway in two provinces
Manitoba and Nova Scotia announced plans last week to sell remaining US alcohol inventory, valued at C$17.4 million ($12.7 million), and direct profits to local food banks and charities. Nova Scotia's liquor board reported brisk sales since restocking shelves, with Kentucky bourbon leading demand.
Premier Tim Houston said the province will halt future US alcohol orders once current stock is depleted. Proceeds, estimated at C$4 million, will support Feed Nova Scotia and other food security programs.
Manitoba followed suit, with Municipal Relations Minister Glen Simard calling the boycott the "right thing to do" while avoiding waste. Sales begin Monday.
Quebec and British Columbia take alternate routes
Quebec initially considered destroying C$300,000 worth of expiring US liquor but reversed course after criticism. Finance Minister Eric Girard announced on X that soon-to-expire products would instead be donated to charity events and hospitality schools. The province still holds C$27 million in shelved American alcohol.
British Columbia opted to sell its US inventory to restaurants and bars, a spokesperson told Global News in August. No public sales are planned.
Ontario and others stay silent on stockpile plans
Ontario, which has C$80 million ($57.7 million) in US alcohol-some nearing expiration-has not disclosed its strategy. Finance Minister Peter Bethlenfalvy told Newstalk 1010 in November that the province has "no plans" to sell the stockpile, noting most spirits and wine have long shelf lives. He reiterated Ontario's boycott would continue until Canada secures a "tariff-free or low-tariff deal" with the US.
Newfoundland and Labrador have also not announced plans for their stockpiled liquor.
Trade tensions fuel boycott
The boycott began in February after the US imposed tariffs on Canadian goods, including steel and aluminum. While most tariffs were later exempted under the USMCA trade agreement, sector-specific levies on metals, lumber, and automotive products remain.
US President Donald Trump halted trade talks in October after Ontario aired anti-tariff ads on US networks. US Ambassador to Canada Pete Hoekstra called the liquor boycott an "irritant," citing it as a reason for Trump's characterization of Canada as "mean and nasty." British Columbia Premier David Eby countered that the boycott was "having an impact."
US distillers report steep sales decline
The Distilled Spirits Council of the United States (DISCUS) reported an 85% drop in exports to Canada mid-year, with declines also noted in the UK and EU. Council CEO Chris Swonger called the trend "very troubling" and urged both nations to resolve trade disputes.
"We hope Canada and the US can address these concerns so our products can return to Canadian retail shelves as soon as possible,"
Chris Swonger, DISCUS President and CEO
