Sweeping U.S. ban on Canadian alcohol takes effect

A U.S. ban on many Canadian alcoholic imports took effect Tuesday, leaving Canadian producers facing lost sales and uncertainty after they rushed shipments and stockpiled inventory to cushion the disruption. The United States is a major market for the industry, and some products remain stranded in warehouses or production plans have been put on hold. U.S. consumers may not feel an immediate shortage because retailers have inventory and some bulk shipments— including certain whisky and liqueurs shipped in containers larger than four liters—are exempt, though adapting packaging and bottling could add costs. Canadian producers are also seeking to replace U.S. sales at home, but say provincial trade rules and government-controlled retail systems make it difficult for out-of-province brands to reach store shelves. The dispute is part of a broader trade conflict, while Canadian leaders have pledged to reduce internal trade barriers and industry groups are pressing for changes that would make domestic sales easier.