U.S. Alcohol Exports to Canada Plummet 62% Amid Tariff Dispute

In the first half of 2025, the United States' alcohol industry experienced a substantial decline in exports to Canada, with a 62% decrease in the value of distilled spirits shipped to the region. The Distilled Spirits Council, a Canadian industry organization, reported that the export value of American distilled spirits to Canada for this period was 43.4 million dollars, marking a significant drop from the same period in 2024. This decline is primarily due to the additional tariffs imposed by the United States on Canadian goods, which has led to a consumer boycott of American products in Canada, with alcoholic beverages being particularly affected.

The impact on the U.S. wine industry has been even more severe, with exports to Canada dropping by approximately 67% during the same period. This dramatic decline underscores the broader economic tensions between the two countries, as Canadian consumers actively seek alternatives to American products in response to the tariffs. The situation highlights the vulnerability of the U.S. alcohol industry to geopolitical factors and the potential for significant market disruptions in the face of trade disputes.

In the province of Ontario, which has the largest population in Canada, the Liquor Control Board of Ontario operates 688 stores that sell spirits and wine to residents. In 2024, the Liquor Control Board sold over 700 million dollars worth of American spirits and wine. However, sales have now dropped to zero. Mike Brisebois, who runs the digital magazine Whisky Adventurer, held a tasting event in Canada in June. Based on guest recommendations, he only served Canadian, Irish, and Scottish whiskies. He noted that the current theme is to boycott American products.

The Wine Institute, which represents California wineries, estimated that U.S. wineries lost over 173 million dollars in exports to Canada in the first half of 2025. According to 2024 data, Canada accounted for 35% of U.S. wine exports, making it the industry's largest export destination to date. The chief executive officer of Sagamore Spirit, a U.S. spirits company, revealed that earlier this year, approximately 10% of the company's products were sold to Canada. However, this figure has now dropped to zero. The CEO predicted that the company's sales would decrease by approximately 2 million dollars this year, a significant loss for a small craft distillery.

The chief executive officer of the Canadian Vintners Association pointed out that the removal of American alcoholic beverages from the Canadian market has not only caused market chaos but also signifies the breakdown of the trust relationship between the two countries that has been built over decades. This has affected farmer families and related enterprises that rely on the international market. However, on the other hand, local alcohol merchants in Canada have seen an increase in sales. A spokesperson for the Ontario Ministry of Finance stated that since the boycott of American alcoholic beverages, the province's local alcohol products have seen a 14% increase in sales. The spokesperson also emphasized that in response to U.S. tariffs, Ontario has revoked the qualification for American alcoholic beverages to be placed on the shelves in the province.

Some consumers are taking advantage of the window of opportunity created by the Canada-U.S. trade negotiations to stock up on American alcoholic beverages. The manager of Whitehall Vineyards in Alberta stated that since the province resumed alcohol purchases in June to improve the atmosphere of Canada-U.S. trade negotiations, the sales of American wine have surged by 30%, and the sales of bourbon whiskey have increased by 7%. People are concerned that they may no longer be able to purchase these alcoholic beverages.