American wine sales in Canada have plummeted after Canada began barring the sale of US alcohol in response to President Donald Trump’s tariffs, US news outlet Newsweek reported.
Canada accounts for a significant portion of the United States' wine exports - 36 % in 2024 - and ongoing trade policy tensions have left producers concerned that they could lose out on this key market, fears shared by US distillers.
Prime Minister Mark Carney announced that he would be dropping the retaliatory tariffs in August, but many provinces have kept their bans in place.
The effects of these bans have been compounded by a wider boycott of US 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 drop in Canadians travelling to the US.
The US International Trade Commission says wine exports fell 73% 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% 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.
The Wine Institute says that should the bans remain in place and exports continue to sink, “the US will cede its share of the market to the EU, Australia and New Zealand.”






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