
The recent announcement by U.S. President Donald Trump imposing tariffs on Canadian products is yet another reminder of the volatility of international trade and the risks faced by businesses that rely on cross-border commerce. While these tariffs are poised to negatively impact Canadian industries, including Alberta’s craft distillers, Canada’s swift response with retaliatory tariffs on U.S. spirits, wine, and beer creates a unique opportunity to strengthen our domestic market. However, for Alberta’s distillers to fully seize this opportunity, they require targeted support and policy reforms that go beyond interprovincial trade barriers.
The “Buy Canadian” Moment
With U.S. spirits now facing tariffs in Canada, Alberta’s craft distillers have an incredible
opportunity to capture market share and build brand loyalty domestically. Canadian consumers are already demonstrating a growing interest in supporting local businesses, and this trade dispute could accelerate that trend. This is a moment for Alberta’s craft distillers to double down on marketing efforts, educating consumers about the quality and uniqueness of locally crafted spirits.
Retailers, restaurants, and bars should seize this opportunity to feature Alberta-made spirits more prominently, showcasing the innovation and craftsmanship of our local distilling industry. By promoting homegrown products, we can strengthen the domestic industry and insulate it from the unpredictability of international trade disputes.
A Holistic Plan to Support Alberta’s Craft Distillers
To truly capitalize on this opportunity and create a stronger, more competitive distilling industry, Alberta must take decisive action. Here are key steps the province can implement immediately to support its craft distillers:
Immediate Markup Reform for Economic Relief: The Alberta government should implement markup reform as proposed by the Alberta Craft Distillers Association (ACDA) to immediately alleviate financial pressures on local distilleries. Reducing provincial markups would provide immediate relief and allow small producers to reinvest in growth, job creation, and market expansion.
Break Down Interprovincial Trade in Phases: While interprovincial trade remains a major barrier, a phased approach can unlock access. The fastest step is enabling direct-to-consumer (DTC) shipping nationwide through a memorandum of understanding between provinces. Next, expanding direct-to-licensee sales for bars and restaurants will further increase market access. Finally, full access to provincially owned distribution channels and retailers must be established to level the playing field with foreign products.
Address the Scale Disadvantage Through Excise Tax Reform: Canada’s excise tax system was built on the volume and market dominance of U.S. producers and multinational-owned Canadian distilleries. The Government of Alberta can support our craft distilling industry with an aggressive push for excise tax relief for Canadian-owned producers to account for scale differences and ensure fairer competition. Additionally, future American spirits imports should face higher excise rates, rewarding domestic producers who stepped up during the tariff period.
Support Local with Targeted Marketing and Tourism Grants: The Alberta government should allocate funding for marketing campaigns promoting locally made spirits, reinforcing the “Buy Canadian” movement. Additionally, tourism-related grants should prioritize distillery tourism, encouraging Canadians to explore the wealth of local spirit producers in their own backyard and boosting Alberta’s visitor economy.
Negotiate Interprovincial Trade Agreements: Alberta should lead the charge in negotiating mutual trade agreements with other provinces to eliminate restrictive liquor import and distribution regulations. A framework that allows for reciprocal market access would create a more open and competitive landscape for craft distillers across Canada.
Streamline Licensing and Distribution Processes: The province must work with industry stakeholders to simplify and standardize licensing requirements, product listings, and interprovincial shipping policies. A centralized online marketplace for Canadian spirits could facilitate smoother transactions and reduce administrative burdens for producers.
Allow National Shipping with Local Taxation: Ontario’s new requirement to report liquor sales made online has no enforcement mechanism, highlighting the need for a national approach. Alberta distillers should be allowed to ship nationally, with the transaction occurring in their home province, ensuring local taxation applies while enabling seamless national sales.
Advocate for Federal Reform: Alberta should push for federal leadership in harmonizing provincial liquor regulations, ensuring that Canadian distillers have the same market freedoms as international producers. A national strategy to modernize interprovincial alcohol trade laws would strengthen the entire industry and provide consumers with better access to Canadian-made products.
A Call to Action
The Alberta Craft Distillers Association urges consumers, retailers, and policymakers to recognize both the challenges and opportunities presented by the latest U.S. trade measures. But more importantly, we call on the federal and provincial governments to take comprehensive action to support Alberta’s craft distillers. Implementing markup reform, removing trade barriers, adjusting taxation, and investing in local marketing initiatives will provide a much-needed boost to the industry.
If we respond strategically to these tariffs, we can turn adversity into an advantage, strengthening our domestic industry and ensuring that Alberta’s craft spirits thrive at home and beyond. Now is the time to act, and with the right policy decisions, we can secure a sustainable and prosperous future for Alberta’s craft distilling sector.
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