Canada is coming up with ways to put its stockpiled American liquor to good use.
Several provinces in the country halted imports of US booze and removed it from store shelves in March in response to President Donald Trump’s tariffs.
Now, at least four provinces are planning to sell the remaining inventory and donate proceeds to food banks.
Canada’s far eastern province, Prince Edward Island, told Business Insider that its government will put its stock of American booze, which it had pulled off the shelves, back in stores starting on December 11.
A representative for the province’s finance department said the government anticipates profits of $600,000 Canadian dollars, or about $434,000, from the sale. The proceeds will be distributed to food banks across the island. The province says it does not intend to place any further orders for American alcohol.
The finance office of Newfoundland and Labrador told Business Insider it had made an upfront payment of $500,000 on Tuesday to 60 provincial food banks before the sales of any liquors, a move that will help more than 15,400 people. After the liquor is sold, more donations will go to the food banks for a total sum of up to $1 million.
Manitoba and Nova Scotia have similar plans.
Manitoba said it will sell its inventory through private retailers and restaurants, with the estimated $500,000 in net revenue going to food banks, holiday charities, children’s organizations, and an advocacy group for First Nations.
As for Nova Scotia, the province is making a $4 million upfront payment to groups that provide food access, and the money will be recouped when the $14 million worth of liquor is eventually sold.
“We will not be ordering any more from the United States once this inventory is gone,” the province’s premier, Tim Houston, said in a statement. “But Nova Scotians have already paid for this product.”
He added, “We don’t want it to go to waste. That’s why we’re selling it and using the proceeds to help those in need.”
In Canada, the sale of alcohol is mainly controlled by provincial governments, each of which establishes a board to oversee the matter. Only Alberta has a completely privatized alcohol retail system, while Saskatchewan has a partially privatized system.
Canada mainly imports whiskey and bourbon, alongside beer and other spirits, from the US.
Other provinces have different plans
The provinces are not taking a one-size-fits-all approach to dealing with their stockpiles of American booze. Some are still undecided about what to do, while others have already sold off their inventory earlier in the year after ceasing imports.
A spokesperson for Ontario’s finance ministry told Business Insider that the province had no plans to put the booze on store shelves soon.
“US alcohol will remain off shelves and is being held in storage until further notice,” said the spokesperson. “We are currently exploring options for the products.”
Ontario did not disclose how much inventory it still has, but the province said the inventory it had pulled off the shelves in March was worth around C$80 million.
A government representative from the Northwest Territories and a spokesperson of the British Columbia Liquor Distribution Branch both told Business Insider that they ceased US liquor imports in March, but will continue selling the stockpiled products until they are depleted.
A Yukon government cabinet representative said Yukon has the same plan.
However, the mountainous province of Alberta continues to import and sell American booze.
“In June this year, Alberta lifted restrictions on the purchase of US alcohol from American companies, signalling a renewed commitment to open and fair trade with our largest partner,” a spokesperson of Service Alberta and Red Tape Reduction told Business Insider.
American distillers are hurting
The matter of US booze has been fueling the trade tension between the two neighbors.
The animosity started when Trump imposed a 25% tariff on Canada in March and commented that Canada should become a state of the US.
Despite later walking back some of his broader tariffs and upholding a previous agreement that ensured most goods remain tariff-free, Trump’s moves have drawn the ire of Canadians, who have canceled travel plans and boycotted American goods in stores.
According to the Distilled Spirits Council, US spirits exports to Canada plummeted 85% in the second quarter of 2025, falling below $10 million in export value.
“We hope both the US and Canada can address their respective concerns,” said Chris Swonger, the CEO of the council. “And that our products can return to Canadian retail shelves as soon as possible.”
In March, Kentucky’s bourbon makers said Canada’s ban on American alcohol would hurt them.
Eric Gregory, the president of the Kentucky Distillers’ Association, said in March that retaliatory tariffs would have “far-reaching consequences across Kentucky, home to 95% of the world’s bourbon.”
