Canada Decides Fate of Its US Alcohol Stockpiles

Canada is taking decisive action regarding its stockpiled American alcohol. In March, several provinces halted imports of U.S. liquor following the imposition of tariffs by U.S. President Donald Trump. Four provinces are now planning to sell existing inventory and donate the proceeds to food banks.

Plans for American Alcohol Sales

Prince Edward Island is set to resume sales of American liquor starting December 11. The province expects to generate approximately C$600,000, or around $434,000 USD, from these sales. The proceeds will benefit local food banks, and the island government stated that it does not intend to reorder American alcohol.

In Newfoundland and Labrador, an upfront payment of C$500,000 was made to support 60 food banks, aiding over 15,400 individuals. After the liquor sales, efforts may yield up to C$1 million for these organizations.

Other Provincial Responses

• Manitoba: The province plans to sell its American liquor through private retailers, anticipating C$500,000 in net revenue for food banks and charities.
• Nova Scotia: An upfront payment of $4 million will assist food access groups. This amount will be offset through the sale of $14 million worth of liquor.
• Ontario: Currently, there are no plans to sell American alcohol, which is being held in storage. The province’s inventory, valued at C$80 million, remains untouched.
• British Columbia: Announced intentions to continue selling U.S. liquor until inventory depletes, much like the Northwest Territories and Yukon.
• Alberta: The province has resumed imports of American alcohol, lifting previous restrictions in June.

Trade Implications and Industry Impact

The situation reflects increasing trade tensions between Canada and the U.S. The tariffs imposed by Trump have led to Canadian consumers boycotting American products and significantly impacted U.S. spirits exports. According to the Distilled Spirits Council, exports to Canada fell 85% in the second quarter of 2025, dropping below $10 million.

Industry leaders from the U.S. have expressed concerns over retaliatory tariffs. Chris Swonger, CEO of the Distilled Spirits Council, emphasized the need for both nations to address their trade issues to restore access for American products in Canada.

As this situation unfolds, Canada’s management of its U.S. alcohol stockpiles continues to evolve, highlighting both the logistical and economic challenges inherent in international trade relations.