Recently, Canada has put a big roadblock for U.S. booze, making things tough for American wineries and distilleries.
Walk into many liquor stores in Canada and you won’t find Jack Daniel’s, Maker’s Mark, or Sailor Jerry Spiced Rum. Instead, a pile of American wines and spirits are stuck in storage as Canadian drinkers skip over them.
This shift came after President Trump’s trade disputes with Canada earlier this year. Many provinces in Canada, which manage the country’s alcohol strength, simply stopped ordering any of the alcohol made in the U.S. Instead, they replaced those brands with local options on their shelves.
Mike Brisebois, the guy behind a digital magazine called The Whisky Explorer, hosted a tasting in June filled only with Canadian, Irish, and Scotch whiskies, all at the request of his attendees who wanted nothing to do with U.S. products. “It’s pretty clear, they’re sending a message by boycotting U.S. drinks,” he remarked.
Now, several months post the chaos between the U.S. and Canada, industry stats are showing the damage done to U.S. alcohol sales.
The Distilled Spirits Council, a notable industry group, reports that U.S. distilled spirits sales to Canada plummeted to around $43.4 million in the first half of 2025. That’s a steep drop of 62% compared to the previous year. Exports of American wines saw a stunning 67% decline as well, according to the statistics released.
In Ontario, where most Canadian alcohol transactions happen through the provincial liquor control board’s 688 outlets, sales of U.S. liquor hit over $700 million last year. But that number has now hit rock bottom.
The Wine Institute, representing California wineries, said American wineries lost more than $173 million in revenue this year alone within those six months. Canada used to be a huge player, making up 35% of all U.S. wine exports in 2024, but that’s long gone.
Wine Institute CEO Robert Koch expressed concern, stating, “Not having U.S. wine available in Canada is a big deal. It shows we’re losing a vital partnership that’s been there for ages. It’s not just sour grapes; it affects farmers, jobs in small towns, and the businesses relying on this market.”
Hope Family Wines, based in Paso Robles, noted a nearly 10% drop in sales to Canada this year. Gretchen Roddick, a top executive from the winery, mentioned that their wines are just gathering dust in Canadian warehouses after being pushed off the shelves.
She said, “This is definitely hitting us hard personally.”
Robert Cullins, CEO of Sagamore Spirit in Baltimore, pointed out that getting U.S. rye whiskey approved in Canada can take up to three years. Major changes have been felt as Canadian sales plummeted from a steady 10% to zero this year.
Cullins estimates that this year, Sagamore will face around $2 million in losses, which translates to about a whole container of rye whiskey. “For a craft distillery, that amount is pretty huge,” he noted.
Recently, Canadian shelves are filled with local products like Maverick Distillery’s Barnburner Whisky, shining a light on the rise of provincial brands. Officials from Ontario’s financial department indicated a 14% jump in local product sales directly corresponding to the U.S. alcohol boycott.
According to him, “We had to ditch U.S. alcohol because of Trump’s tariffs that are directly aimed at our economy.”
In a recent event in Washington state, U.S. Ambassador to Canada Pete Hoekstra noted that this U.S. alcohol boycott was a significant reason one might hear Trump decrying Canada as “difficult in negotiations.”
These drink bans fit into a broader trend of rising anti-American feelings in Canada. Many Canadians are upset about Trump’s remarks suggesting Canada could become the 51st state, with some opting to cancel trips to the U.S. and avoiding other American-made products.
Despite some negative feedback towards U.S. alcohol, many Canadians still crave those American drinks. When Alberta froze U.S. liquor buying in March, a 40% drop in overall purchases of American products occurred from April to June, including a 55.5% slide in American wines, as shared by a spokesperson for Alberta’s Gaming, Liquor, and Cannabis Commission.
In an effort to ease tensions in trade discussions, Alberta resumed its purchases of U.S. alcohol in June, despite the American booze now being slapped with a 25% tariff. Yet, buyers still seem to fork out the cash.
Calgary’s own Jasmeen Grewal, owner of Platina Liquor, has reported a recent 30% spike in U.S. wine sales. Even her U.S. bourbon sees a 7% increase. It seems consumers from across Canada are stockpiling popular items like the Bread & Butter Cabernet Sauvignon and Californian wines from Josh Cellars.
“Consumers are worried that these products might not be available again soon,” Grewal said.
For further inquiries, reach out to Laura Cooper at laura.cooper@wsj.com or Vipal Monga at vipal.monga@wsj.com.
