Ontario and Québec urged to sell U.S. alcohol stocks amid new U.S. tariffs
U.S. President Donald Trump announced 50% tariffs on Canadian goods, prompting analysts to suggest that Ontario and Québec could sell their remaining U.S. alcohol inventories while keeping import bans.
President Donald Trump announced 50% tariffs on a range of Canadian products, including wine, hockey sticks, cement and dairy, to take effect within 30 days. The White House said the measures are retaliation for what it described as Canada’s “discrimination against and unreasonable and unequal treatment of U.S. commerce,” specifically citing Ontario and Québec’s bans on American alcohol.
The two provinces still hold roughly $96 million of U.S. liquor that was removed from shelves after all 13 Canadian provinces and territories halted U.S. alcohol imports in February 2025. While British Columbia, New Brunswick, Yukon and several Atlantic provinces have already liquidated their stocks, Ontario has not sold any of its $79 million inventory and Québec retains about $17 million.
Ontario officials have written off $2.6 million in expired product and incurred $8 million in storage costs, while the provinces collectively face about $1 million per month in taxpayer expenses to keep the stock. Analysts note that selling the existing inventory at regular retail mark-ups could generate roughly $163 million for Ontario and $33 million for Québec, providing a fiscal benefit and a diplomatic gesture without lifting the import bans.
U.S. alcohol exporters have seen exports to Canada fall 76% for wine and 46% for spirits in 2025, a loss estimated at $725 million. Lawmakers in Washington have responded with proposals ranging from punitive legislation against the boycotting provinces to calls for resuming sales of California wines.
“The increase is in retaliation for Canada’s discrimination against and unreasonable and unequal treatment of U.S. commerce,” the White House said.
Canadian premiers are meeting in Prince Edward Island to discuss broader trade challenges, and the alcohol dispute is expected to be on the agenda. The proposed approach—selling existing U.S. stock while maintaining the import ban—could ease provincial budget pressures and signal goodwill to U.S. negotiators as trade talks continue.