Minister Christine Fréchette says the province wants details from Mark Carney before reversing its trade-related restriction.

Federal filings say the move answers alleged Canadian discrimination against U.S. alcohol producers, forcing importers to rework inventories.

Provinces across Canada are implementing new rules to allow direct-to-consumer alcohol sales, aiming to dismantle interprovincial trade barriers that have long restricted the free movement of alcohol within the country. This initiative, supported by nine premiers, enables brewers and distillers to sell directly to consumers outside their home provinces, addressing longstanding challenges in cross-border trade. The move is part of broader efforts to modernize trade regulations and reduce costs for manufacturers. The decision comes amid heightened tensions with the U.S., where President Donald Trump's threat of 50% tariffs on Canadian exports has intensified pressure on provinces to streamline trade. Industry leaders argue that removing provincial restrictions could mitigate potential losses from U.S. market instability. While some provinces like New Brunswick and Manitoba have already made progress, others, including British Columbia and Quebec, have set specific timelines for implementation. The agreement, signed last year, aims to fully open provincial borders to direct consumer sales by May 2026. This development highlights the intersection of trade policy, economic resilience, and regional cooperation in Canada's evolving market landscape.

Wine, beer and cider shipments to markets outside the bloc weakened, with the United States driving much of the decline.

U.S. alcohol exports to Canada plunge 72% as provincial bans disrupt longstanding trade ties and hit American producers hard

Tariffs, trade tensions, and economic uncertainty drive steepest drop in American demand for French alcohol in years

Ongoing tariffs and retaliatory measures disrupt cross-border alcohol trade, impacting producers, retailers, and consumers in both countries

Ongoing tariffs and retaliatory measures disrupt cross-border alcohol trade, impacting producers, retailers, and consumers in both countries

PARIS (Reuters) -The European Union and the United States need to de-escalate their trade dispute and wine and spirits should be left untouched by both sides, said Florent Morillon, the president of the National Interprofessional Office of Cognac (BNIC), the cognac industry’s lobby group. "We will very clearly lose market share," he said in an interview with Reuters. "For our region and our entire economy, it is a cold shower." U.S. President Donald Trump imposed on Wednesday sweeping tariffs on imports, including 20% on products from the European Union. The cognac industry has separately also faced pressure from China, which imposed temporary tariffs on shipments of the spirit in October amid a dispute with the European Union over electric vehicles. The United States and China are the cognac industry’s most important export markets. Last month, Trump threatened to impose a 200% tariff on wine, cognac and other alcohol imports from Europe in response to a European Union plan to impose tariffs on American whiskey and other products. The EU plan was itself a reaction to Trump’s 25% tariffs on steel and aluminium imports. Asked about the risk of additional U.S. tariffs on cognac, Morillon said the group was under the impression that discussions were on track to avoid that scenario, but that it needed to remain prudent.