After more than seven months since the NSLC removed American alcohol from its shelves in response to the trade war with the U.S., the corporation has decided against selling off any of the stored product, in contrast to New Brunswick Liquor’s recent move.
New Brunswick Liquor has begun selling off the $3.4 million worth of American alcohol still in its inventory. Meanwhile, the NSLC retains approximately $14 million worth of American products in storage, referring to goods originating from the U.S.
Notably, certain products that may seem American, like Budweiser, are excluded from this category. For example, beers like Budweiser and Bud Light are brewed at the Oland Brewery in Halifax, which is part of the global beer company Anheuser-Busch InBev. Similarly, Coors operates breweries in Canada, including one in Moncton, New Brunswick.
The presence of “The spirit of New Orleans” – Southern Comfort – on NSLC shelves is explained by its production and bottling location in Montreal.
Regarding the fate of the stockpiled American alcohol, the Finance Department spokesperson Rachel Boomer mentioned that the province has yet to make a decision. The current non-tariff measures prohibiting the sale of American alcohol are set to continue for the time being, with a possibility of review in the future for potential benefits in negotiating a long-term trade agreement with the U.S.
Despite the ongoing restrictions, American alcohol is still unavailable for sale in many parts of Canada due to the tariffs imposed by U.S. President Donald Trump earlier this year. Trump’s controversial comments about Canada becoming the 51st U.S. state have also stirred discontent among Canadians.
The NSLC confirmed that none of the stored American alcohol has been discarded due to concerns about perishability. In Quebec, the provincial liquor board, SAQ, initially planned to destroy around $300,000 worth of American alcohol but later decided to donate it to charitable foundations and use it for training in Quebec’s hospitality schools.
The boycott on American alcohol by several provinces has had a negative impact on U.S. alcohol producers. The Distilled Spirits Council of the United States reported an 85% decline in American spirit exports to Canada in the second quarter of 2025, with sales dropping below $10 million US for that period. This situation has led to calls for a return to tariff-free trade with key international markets by the council’s CEO.
In a similar vein, sales to Canada for companies like Brown-Forman, which owns brands like Jack Daniel’s and Woodford Reserve, decreased by 62% during the first fiscal quarter of 2026.
On a positive note, the absence of American alcohol on NSLC shelves has boosted sales for local and Canadian producers. Sales of Nova Scotia spirits and wine saw a 24.2% and 15.1% increase, respectively, compared to the same period last year. Canadian wine and whisky sales also saw an uptick of 8.9% and 8.5%, respectively.
These shifts in the market highlight the broader implications of the trade war on the alcohol industry and the evolving consumer preferences in Canada.