Politics

Why Some Canadian Provinces Are Still Banning American Alcohol

Graham ThorntonPublished 2month ago5 min readBased on 7 sources
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Why Some Canadian Provinces Are Still Banning American Alcohol
Photo by © European Union 2020 / Attribution

Prime Minister Mark Carney asked Canada's premiers on a Wednesday phone call to lift their bans on selling American alcohol at government-run liquor stores. The request comes as Canada and the U.S. appear close to a trade deal that would set tariffs on cars at 15% (The Globe and Mail; The Globe and Mail; BBC).

A tariff is a tax a government puts on goods coming from another country. During the trade dispute between Canada and the U.S., several Canadian provinces pulled American wine and spirits off their store shelves as a form of retaliation.

As of Friday afternoon, Ontario Premier Doug Ford had said nothing about whether he would comply. Ford oversees the Liquor Control Board of Ontario (LCBO), one of the biggest alcohol buyers in the world. It normally purchases nearly $1-billion worth of American alcohol a year (The Globe and Mail). An earlier Reuters report said Ford would not put U.S. liquor back on shelves unless tariffs were removed or a new deal was reached (Reuters). More recent Globe and Mail reporting from Aug. 21 simply says Ford has not indicated either way.

Ford has reversed course quickly before. In March 2025, he added a surcharge on electricity Ontario sells to the U.S., then dropped it a day later after Donald Trump objected (The Globe and Mail).

Different provinces responded differently to Carney's request. Alberta and Saskatchewan had already lifted their bans. Saskatchewan Premier Scott Moe said stepping back from the alcohol ban was needed for trade talks to move forward. Newfoundland and Labrador Premier Tony Wakeham said all the premiers agreed to lift the ban "as a sign of good faith" (The Globe and Mail).

Manitoba Premier Wab Kinew said he would think about it, calling the request "a step before begging." He encouraged consumers to keep avoiding American alcohol even if it returns to shelves. Quebec Premier Christine Fréchette said she would only restore U.S. alcohol sales if the deal turns out well for Quebec (The Globe and Mail).

B.C. Premier David Eby was on vacation with poor cell reception and missed the call. He had not said whether his province would comply. Eby had previously encouraged consumers to keep boycotting U.S. goods, saying "Keep it up" (The Globe and Mail; The Globe and Mail).

The broader context is a trade negotiation under pressure. A proposed deal would set U.S. tariffs on Canadian-built cars at 15%. BBC reporting from Aug. 20 said an agreement to prevent new U.S. tariffs is close and could include an end to Canada's boycott of American wine and spirits (BBC). Carney has said: "We are intensifying our trade negotiations with the United States and will not hesitate to defend our interests if we have to" (Reuters.

The alcohol bans were a provincial decision, and lifting them is also a provincial decision — not Ottawa's to make. In Canada, each province runs its own liquor stores, so each premier has to order the change individually. The premiers who lifted their bans earliest, Alberta and Saskatchewan, are also the ones whose economies are most tied to U.S. energy and farming. The two holdouts, Ford and Eby, run the provinces with the biggest liquor store operations.

Quebec's position is worth noting. Like the LCBO, Quebec's SAQ is a government-run liquor monopoly. When Fréchette says she will restore sales "only if the deal turned out to be positive for Quebec," she is keeping the right to judge the agreement from her province's perspective before acting. That is different from Wakeham's claim that all premiers agreed collectively, and it suggests the premiers may be less united than Wakeham's words imply.

Kinew's comment, "a step before begging," points to the political difficulty several premiers face. Having urged consumers to boycott American products, reversing now could look like giving in under pressure. Kinew's approach — telling consumers to keep refusing U.S. products even if the government lifts its ban — tries to satisfy both sides.

Ford's silence is what to watch. Because the LCBO buys so much alcohol, Ontario carries outsized weight in any joint provincial move. If Ford refuses or delays, the premiers' "good faith" gesture becomes a patchwork instead of a clear signal to Washington. His record of quick reversal under Trump pressure, as with the electricity surcharge, suggests he will likely bend toward pragmatism — but he has not said so himself.