Copyright Newsweek
American exports of wine to Canada have plummeted after the country began barring the sale of U.S. alcohol in response to President Donald Trump’s tariffs. In a recent report, the Sacramento-based Wine Institute found that American wine exports were down 91 percent between March and July 2025 compared to the same period last year. The advocacy group, which represents wineries and related businesses across California, also estimated that U.S. producers have lost out on roughly $161 million in export value to the country since March. Why It Matters Canada accounts for a significant portion of the United States' wine exports—36 percent in 2024—and trade policy tensions have left producers concerned that they could lose out on this key market, fears shared by U.S. distillers who have also been grappling with the nearly nationwide ban on their products in Canada. As the Wine Institute noted in its report, “there has been no comparable, immediate drop in wine sales of this magnitude in recent history.” The country's retaliatory actions, it warns, could hurt not only American exporters but also Canadian businesses and the government, which stands to lose billions in tax revenues. What To Know In March, the Canadian government imposed retaliatory tariffs on U.S. imports in response to the duties Trump had placed on the country. Meanwhile, several Canadian provinces, including Ontario and Quebec, also decided to remove U.S. alcohol from government-run liquor stores. Prime Minister Mark Carney announced that he would be dropping the retaliatory tariffs in August, but many provinces have kept their prohibitions in place. The effects of these bans have compounded a wider boycott of U.S. goods in response to the trade standoff, as well as Trump’s repeated references to Canada as America’s “51st state,” which have also been credited with a significant drop in Canadian travel to the U.S. According to data from the U.S. International Trade Commission, wine exports fell 73 percent year over year in March, from $34.5 million to $9.2 million. These losses worsened in the following months, resulting in an overall decline of 96 percent for the second quarter. This mirrors the struggles of America’s distillers, with second-quarter spirit exports to Canada plunging by 85 percent year-over-year, according to the Distilled Spirits Council of the United States. What People Are Saying The Wine Institute said in its report: “Restoring access isn’t just about trade, it’s about protecting family livelihoods, supporting economies and renewing a relationship that has benefited both nations for generations. Wine Institute stands ready with a plan to help U.S. wineries rebuild those relationships and return to Canadian shelves as quickly as possible.” Distilled Spirits Council President and CEO Chris Swonger said in August: "The unfortunate decision to remove American spirits from Canadian retail shelves is not only harming U.S. distillers, but it’s also needlessly reducing revenues for the provinces, and placing unnecessary burdens on Canadian consumers and hospitality businesses. “American and Canadian spirits are deeply rooted in heritage and are meant to bring people together, not divide us. We are hopeful this is a sign that our special spirits products will soon be back on shelves for Canadians to enjoy and raise a glass to toasts not tariffs.” What Happens Next According to the Wine Institute, should the bans remain in place and exports continue to sink, “the U.S. will cede its share of the market to the EU, Australia and New Zealand.”
