CBC News reports that provincial bans on US alcohol have become a significant issue in Canada-US tariff negotiations, with American wineries and drinks producers increasingly caught between the two governments. Provincial leaders are considering whether US bottles should return to shelves as part of efforts to ease trade tensions, but the commercial damage is already substantial, US Census Bureau data cited in the report show American wine exports to Canada fell by US$343 million between 2024 and 2025, a 77% year-on-year decline in what had been the largest export market for US wineries.
Canada
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Trump Hits Canada With 50% Tariffs Over US Alcohol Ban
The Drinks Business reports that US President Donald Trump has imposed additional 50% tariffs on selected Canadian products, partly in response to Canadian provinces removing American wines, beers and spirits from their controlled retail and distribution systems. The measures take effect on 19 August 2026 and follow an approximately 81% fall in Canadian imports of US alcoholic beverages between March 2025 and February 2026. The dispute places wineries on both sides of the border within a broader trade conflict, with the US administration hoping the duties will persuade Canadian provinces to restore American alcohol listings.
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Wine Institute Pushes to Restore US Wine Access in Canada
Wine Industry Advisor reports that a Wine Institute delegation of senior winery owners, winemakers and executives from 14 California wineries travelled to Washington, DC, to press for action on returning US wine to Canadian shelves. The group said Canadian provincial bans on US alcohol have damaged wineries, distributors, retailers, restaurants and consumers, and it wants both governments to restore full market access for US wine in Canada.
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Canadian Provincial Bans Drive Sharp Drop in U.S. Wine Exports
Wine Institute reports that a year after Canadian provinces pulled U.S. wines from shelves in response to tariff retaliation, full-year 2025 data shows U.S. wine exports to Canada fell 78% year on year, equating to a $357 million loss in export value. The press release says the shift flipped a $254 million U.S. wine trade surplus in 2024 into a $90 million deficit in 2025, and it argues Canada’s importance as a destination fell sharply, from 36% of U.S. wine exports in 2024 to 12% in 2025. Wine Institute is calling for an immediate resolution, noting knock-on impacts for growers, distributors, hospitality and communities on both sides of the border.