Province turns off the taps on U.S. liquor as part of tariff war​on March 5, 2025 at 10:54 pm

Albertans will soon be without American wine, beer and spirits after the government announced yesterday Alberta will bar U.S.-produced liquor from the province as part an ongoing trade war.

On Wednesday, Premier Danielle Smith said the government has directed Alberta Gaming, Liquor and Cannabis to halt its purchases of U.S. liquor products. Last year they were worth $292 million and yielded $84 million in markup revenue for the province.

She also said there will be a pause on orders of VLT machines from the U.S.

“We’ll just have to drink a little more B.C. wine and Alberta craft beer and spirits which is okay with us,” said Smith.

The decision was made with the understanding that the void will be filled by products from sources in Canada and other countries, said the premier.

Such action spread across the country would likely mean a $2-billion to $3-billion hit to the U.S. booze industry, said Smith. Producers of Kentucky bourbon have said they’ve already been feeling an impact from the trade war since Canada is their largest foreign market.

“We do know these are the kind of things in the past that’s gotten various producers to call their congress representatives and put some pressure (on them) and that’s what we’re doing,” she said.

Government-operated liquor stores in other provinces have already begun pulling American products from sale, but given Alberta’s private retail model, merchants can sell off their existing U.S. stock, said Yvonne Martinez of the Alberta Liquor Store Association that represents operators of the province’s 1,600 liquor stores.

“(Retailers) are not being asked to empty their shelves so the little independent businesses won’t be impacted,” she said.

The amount of U.S. inventory in Alberta liquor stores varies but generally, it accounts for 15 to 25 per cent of their stock, said Martinez, adding merchants aren’t necessarily thrilled with the decision.

“I wouldn’t say they’re happy but they feel it’s a needed step, for sure,” she said.

One independent Calgary merchant said he’d already seen a noticeable decrease in the sale of U.S. liquor since U.S. threats of tariffs and turning Canada into a 51st state began earlier this year.