Canadian provinces are deciding what to do with millions of dollars’ worth of American alcohol removed from sale earlier this year in response to US tariffs, with some opting to sell the stock for charity, others redirecting it to restaurants, and several still holding large inventories in storage.
Provincial Control of Alcohol Sales
Alcohol sales in Canada are largely overseen by provincial governments through boards that control the import and retail sale of most wine and spirits. Only Alberta and Saskatchewan operate fully privatised liquor retail systems, and they are the only two provinces that have continued selling US alcohol.
Most other provinces pulled American products from their shelves following the introduction of US tariffs on Canadian goods earlier this year.
Charity Sales in Nova Scotia and Manitoba
Nova Scotia and Manitoba announced last week that they will sell their remaining inventories of US alcohol for charitable purposes. Combined, their remaining stock is valued at C$17.4m.
In Nova Scotia, stores saw higher-than-average sales after US liquor was temporarily returned to shelves. The top-selling item was Kentucky bourbon, according to Terah McKinnon, a spokesperson for the province’s liquor board.
Premier Tim Houston said the remaining inventory is being sold to prevent waste and confirmed the province will not place new US alcohol orders once the current stock is depleted. Nova Scotia estimates the sales will raise C$4m to be donated to Feed Nova Scotia and other local food banks.
Manitoba said it will begin selling its remaining inventory for charity starting Monday. Municipal relations minister Glen Simard said removing US alcohol from shelves was appropriate but added the province did not want to wait for products to expire and be destroyed.
Quebec’s Shift Away From Destruction
Quebec previously said in August that it might be forced to destroy about C$300,000 worth of American alcohol nearing its expiry date, a move that drew public criticism.
The province’s finance minister later said on X that Quebec would instead donate soon-to-expire products to charity events and hospitality schools. Quebec has an estimated C$27m worth of US alcohol currently shelved, according to figures reported by the Canadian Press.
British Columbia Sells to Bars and Restaurants
British Columbia has adopted a different strategy. The province told the news outlet Global in August that it had sold its stored US liquor to restaurants and bars rather than returning it to general retail.
Ontario and Newfoundland Hold Large Stockpiles
Ontario and Newfoundland and Labrador have not publicly confirmed plans for their stockpiled US liquor.
Ontario alone is holding approximately C$80m worth of American alcohol, some of which is approaching its expiration date. In a November interview with Newstalk 1010, Ontario Finance Minister Peter Bethlenfalvy said the province had no immediate plans to sell its inventory. He said less than C$2m worth of stock is likely to expire soon and noted that most of the inventory consists of spirits and wine with long shelf lives.
Bethlenfalvy added that Ontario intends to maintain its boycott until Canada secures what he described as a tariff-free or low-tariff trade deal with the United States.
Tariffs, Trade Tensions and Industry Impact
The provincial boycotts began in February after President Donald Trump imposed broad tariffs on Canadian goods. While many of those tariffs are now exempt under the North American free trade agreement, sector-specific duties on metals, lumber, and automotive products remain in place.
Trump has said the tariffs are intended to increase government tax revenue and encourage domestic investment. Trade talks between the two countries were halted in October after Ontario ran anti-tariff advertisements on US television networks.
US ambassador to Canada Pete Hoekstra said in July that the liquor boycott has been a source of irritation in Washington and cited it as one of the reasons Trump and his administration referred to Canada as “mean and nasty.” British Columbia Premier David Eby responded at the time by saying the boycott was having an impact.
Mid-year figures from the Distilled Spirits Council of the United States showed that exports to Canada have dropped by 85%, with declines also recorded in other markets, including the UK and the EU. Council president and chief executive Chris Swonger described the fall as “very troubling.”
In a statement to the BBC on Monday, Swonger said American liquor producers hope that trade concerns can be addressed so that US products can return to Canadian retail shelves.
Featured image credits: PickPik
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