After the trade war with the U.S., Nova Scotia’s NSLC stopped selling American alcohol over seven months ago. Unlike New Brunswick Liquor, which began selling off its remaining $3.4 million American alcohol stock this month, NSLC has no immediate plans to do so. The Crown corporation currently holds about $14 million worth of American alcohol in storage, referring to products made, manufactured, or produced in the U.S.
NSLC’s stored American alcohol inventory excludes some items that may seem American, such as Budweiser, which is produced by the Oland Brewery, a part of Anheuser-Busch InBev, located in Halifax. Similarly, Coors, another perceived American brand, operates breweries in Canada, including one in Moncton, New Brunswick. Southern Comfort, labeled as ‘The spirit of New Orleans,’ continues to be available at NSLC stores as it is produced and bottled in Montreal.
Rachel Boomer, a spokesperson from the Finance Department, mentioned that the province has not yet determined what to do with the accumulated American alcohol. The current non-tariff measures, including keeping American alcohol off shelves, will persist for the time being, with a possibility of review in the future to aid negotiations for a longer-term trade deal with the U.S.
The ban on American alcohol sales in most Canadian retailers and establishments remains in effect due to tariffs imposed by U.S. President Donald Trump earlier this year. Trump’s suggestion of Canada potentially becoming the 51st U.S. state has also stirred controversy among Canadians.
None of the stored American alcohol at NSLC has been discarded due to concerns about perishability, as confirmed by a spokesperson. In contrast, Quebec’s provincial liquor board, SAQ, initially planned to dispose of around $300,000 worth of American alcohol but later decided to donate it to charitable foundations and for educational purposes in Quebec’s hospitality schools.
The boycott on American alcohol by various provinces has significantly impacted U.S. alcohol producers, with exports to Canada dropping by 85% in the second quarter of 2025. This decline has led to concerns within the industry, urging President Trump to facilitate trade negotiations to restore tariff-free trade with key international partners.
Brown-Forman, the parent company of renowned alcohol brands like Jack Daniel’s, reported a 62% decrease in sales to Canada during the first fiscal quarter of 2026, ending on July 31. Conversely, the absence of American alcohol on NSLC shelves has benefited local and Canadian alcohol producers, leading to increased sales of Nova Scotia spirit products, wine, Canadian wine, and whisky compared to the previous year.
The impact of the American alcohol ban on NSLC shelves has highlighted a positive trend for local and Canadian alcohol producers, with increased sales and consumer preference shifting towards domestic products.
