Alberta and Saskatchewan have officially lifted their ban on the import of alcoholic beverages from the United States, reversing restrictions imposed in March during a heated trade dispute over tariffs. The provinces’ alcohol regulators, including Alberta Gaming, Liquor and Cannabis (AGLC), have resumed accepting orders for U.S. alcohol, though retailers remain cautious about restocking.
According to Dale Nally, Alberta’s Minister of Service Alberta and Red Tape Reduction, the move is a strategic signal of goodwill in anticipation of negotiations surrounding the Canada-United States-Mexico Agreement (CUSMA). He emphasized Alberta’s support for proportionate responses to tariffs and noted the province’s unique private liquor retail model, which distinguishes it from other Canadian regions.
Despite the lifted restrictions, a 25% tariff on U.S. alcohol imports remains in place across Canada. This has dampened interest among retailers and consumers, who increasingly prefer Canadian or non-American products. Liquor store owners report that demand for American beverages has sharply declined since the onset of the trade dispute. Many are hesitant to place new orders due to uncertainty over pricing and consumer response, especially in an industry where profit margins are already thin.
While some retail stores continue to stock select U.S. products for loyal customers, most have scaled back their purchases significantly. Importers also point to additional markups from tariffs as a major obstacle, particularly for small and mid-sized operations that cannot afford to absorb the extra costs.
Although the Alberta Liquor Store Association welcomed the decision to resume imports, it confirmed that the buy-local movement remains strong. According to the association, most consumers in the province are now favoring Canadian-made alternatives, and the impact of that shift is being felt across the entire sector.
Recent trade tensions with the U.S. have already caused significant damage. Imports of American wine into Canada have dropped by 93% year-over-year, while imports of U.S. malt beverages and distilled liquors have declined by 50% and 56% respectively, according to the U.S. Census Bureau.
Meanwhile, provinces such as Ontario and Nova Scotia have maintained their bans, with premiers citing continued U.S. tariffs on Canadian goods. Ontario Premier Doug Ford and Nova Scotia Premier Tim Houston both confirmed their regions will not stock American alcohol until the U.S. lifts its retaliatory trade measures.
For now, Alberta’s government is encouraging consumers to support domestic producers, even as American brands attempt a slow return to the Canadian market.
