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Canadian Boycott Cuts U.S. Spirits Sales by Two-Thirds, Drags Down Overall Market

Provincial boycotts have depressed spirits revenues even after Alberta and Saskatchewan lifted bans against a backdrop of looming U.S. tariffs

A paper notice lists the removal of bottles of U.S. alcohol from the shelves of a Liquor Control Board of Ontario (LCBO) store, as part of retaliatory moves against tariffs announced by U.S. President Donald Trump, in Toronto, Ontario, Canada March 4, 2025. REUTERS/Arlyn McAdorey/File photo
An employee removes American spirits from an SAQ liquor store in Montreal on Tuesday, March 4, 2025. THE CANADIAN PRESS/Christinne Muschi
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Overview

  • Sales of U.S. spirits in Canada plunged 66.3% between March 5 and April 30, with Ontario experiencing an 80% collapse after delisting American brands
  • Total spirits sales across Canada fell 12.8% as consumers cut back on liquor purchases and substitute products failed to offset losses
  • Alberta and Saskatchewan have reversed course and resumed U.S. spirits imports while other provinces maintain bans to leverage trade talks
  • President Trump’s planned 35% tariff on Canadian goods from August 1 has amplified a “Buy Canadian” drive among businesses and shoppers
  • Spirits Canada and U.S. industry groups warn prolonged removal of American products is undermining revenues, hospitality sectors and cross-border trade ties