Canada stuck with millions in unsold US alcohol
A trade dispute triggered by US tariffs has left most Canadian provinces with warehouses full of American spirits pulled from shelves. With little sign of reconciliation, governments are scrambling to decide what to do with stock bought at taxpayers’ expense.
As a result of the trade spat with the United States and President Trump’s imposition of punitive tariffs on Canadian goods, Canada has found itself with warehouses full of US alcohol removed from the country’s retail shelves in retaliation.
Only two Canadian provinces – Alberta and Saskatchewan – are still selling US booze and with most of the others operating state monopolies over alcohol sales, they have been left with the multi-million dollar headache of stocks purchased initially at the taxpayers’ expense.
US spirits industry warns of export collapse
Chris Swonger, the president and CEO of The Distilled Spirits Council of the United States (DISCUS) has told the BBC that Canada’s boycott is “very troubling”.
Exports to Canada are down 85% since Trump acted in the spring.
The industry is pressurising the White House so that in Swonger’s words, “our products can return to Canadian retail shelves as soon as possible,” but there is little sign of reconciliation on either side.
Talks were aborted by Trump in October after Ontario ran anti-tariff advertisements on US networks.
Only two provinces continue US alcohol sales
Only the two Canadian provinces that do not run state liquor monopolies – Alberta and Saskatchewan – continue to retail US booze.
The others have been left with the multi-million dollar headache of what to do inventories purchased initially at their taxpayers’ expense.
Can they recoup some of their outlay on American stocks and make room in warehouses for alternative products?
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Ontario, for instance, is reported to be sitting on C$80m ($57.7m; £43.3m) of US alcohol it has withdrawn from public sale and has yet to decide what to do.
British Columbia reportedly is refusing to sell to the public but clearing the overload by selling to hospitality outlets.
Manitoba and Nova Scotia say they will sell their remaining stocks valued at about C$17.4 million and donate proceeds to local charities.
Ontario opts to hold inventory
Nova Scotia Premier Tim Houston said the remaining inventory is being sold so that products don’t go to waste. The province, he said, would not be reordering.
Manitoba has also announced that it will sell off its US stocks for charity.
Ontario Finance Minister Peter Bethlenfalvy said the province has no plans to sell off its inventory of US alcohol, adding that less than C$2m worth will soon go out of date.
The implication is that Canada’s most populous province will sit on the bottles until the tariff war is resolved.
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