Ontario and Quebec’s provincial liquor boards have halted sales of American alcohol, storing $80 million worth of U.S. products at a cost of $8 million to Ontario taxpayers. The move, part of a broader trade dispute with the Trump administration, targets key wine-producing states like California, Oregon, Washington, and New York.
Impact on US alcohol sales in Canada
In fiscal 2023, American wine accounted for 20% of Ontario’s LCBO sales by value, while U.S. spirits represented 11%. The boycott has drawn pushback from the American Whiskey Association, which is now advocating for a U.S. trade inquiry into potential violations and retaliatory measures.
For context, Canada’s provincial liquor systems have long favored domestic products. Quebec’s SAQ, for example, increased Canadian wine sales from 3.7% to 4.1% by volume during the boycott—far below imports from France (35%), Italy (24%), and Spain (20%).
Limited effect on interprovincial trade
Despite past discussions on reducing interprovincial trade barriers, provincial liquor monopolies continue to prioritize local products. In fiscal 2023, 99.9% of the LCBO’s Canadian wine sales came from Ontario. A year after Premier Doug Ford removed U.S. alcohol from shelves, that figure had barely changed, at 99.7%.
Consumer selection remains a concern
Critics argue the boycott highlights a larger issue: Canada’s limited grocery and liquor selection compared to the U.S. Even midrange American supermarkets offer broader variety in staples like eggs, milk, cheese, and specialty meats—often at lower prices. The dispute underscores longstanding structural differences in how Canadian and U.S. markets operate.
What happens next remains uncertain. The American Whiskey Association’s proposed inquiry could escalate tensions, while Canadian consumers may continue to see restricted choices unless broader trade or policy shifts occur.
