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US booze exports to Canada fall more than 60% amid boycott

August 14, 2025
in Business
Reading Time: 4 mins read
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US booze exports to Canada fall more than 60% amid boycott
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Boycott, eh?

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US exports of liquor and wine to Canada have plummeted by more than 60% in the first half of the year as furious Canucks snub American booze because of President Trump’s trade war.

Shipments of popular US-made whiskeys, rums, gins and other liquors through June to Canadian provinces was around $43.4 million, according to the Distilled Spirits Council — a 62% drop from the approximate $114 million during the same period last year.

Wine exports have suffered even more severely, falling approximately 67% based on federal trade statistics provided by the US trade group. The data was first reported by the Wall Street Journal.

A boycott sign in front of US wine bottles in Montreal highlights the politically charged standoff over cross-border trade. AFP via Getty Images

Canadian provinces, which control most alcohol importing and distribution in the country, have replaced popular American brands on store shelves with local alternatives after Trump slapped the northern neighbor with a 25% tariff on US imports.

He further infuriated Canadians by openly musing about making the country the 51st state.

At one recent tasting held in June by The Whisky Explorer, a digital magazine, the only options offered were from Canada, Ireland or Scotland because the drinkers refused to sample US-made brands like Jack Daniels, the Journal reported.

“The general theme was that they were boycotting the US,” Mike Brisebois, a self-styled ambassador of Canadian whiskey, told the Journal.

Ontario’s Liquor Control Board, which operates 688 retail locations across Canada’s largest province, previously sold over $700 million in American spirits and wine annually.

Those sales have now completely disappeared, according to the Journal.

California wineries have been especially hard hit by the restrictions.

Empty shelves in an Ontario liquor store reflect the province’s boycott of US alcohol products amid escalating trade tensions. Elena Berd – stock.adobe.com

The Wine Institute, representing California wine producers, calculates that American wineries have lost over $173 million in export revenue during the six-month period.

Canada represented 35% of total US wine exports in 2024, making it the most important foreign market for American vintners.

“The absence of US wine from Canadian stores is not just a market disruption, it’s a breakdown in a trusted relationship built over decades,” said Robert Koch, who leads the Wine Institute.

“This is not just about wine. It’s about farming families, rural jobs and businesses that depend on access to international markets.”

Individual companies are feeling significant financial pressure from the boycott.

Hope Family Wines, based in Paso Robles, Calif., has seen Canadian sales drop roughly 10% this year.

Gretchen Roddick, a company executive vice president, told the Journal that cases of their Cabernet Sauvignon and other varieties remain stuck in Canadian warehouses after being pulled from store shelves.

“It’s definitely going to hurt us personally,” Roddick said.

Canadians are shunning US brands such as Maker’s Mark whiskey, according to the latest sales figures. sementsova321 – stock.adobe.com

Smaller producers face particularly acute challenges. Sagamore Spirit, a Baltimore distillery specializing in rye whiskey, previously sent 10% of its exports to Canada before sales dropped to nothing.

Company CEO Robert Cullins projects losing approximately $2 million in revenue this year, equivalent to about 1,200 nine-liter cases of whiskey.

“We’re a small craft distillery,” Cullins told the Journal, “so a couple of million dollars is pretty significant.”

The company had spent approximately three years navigating Canadian regulatory approval for its rye whiskey, making the sudden market closure especially frustrating.

Canadian retailers have filled the gap with domestic products including Maverick Distillery’s Barnburner Whisky and Kavi Reserve Coffee Blended Canadian Whisky.

An Ontario finance department representative reported that purchases of Canadian-produced alcohol have increased 14% in the province since the boycott began.

The official said Ontario eliminated American alcohol “in the face of President Trump’s tariffs taking direct aim at our economy.”

Shoppers north of the border are opting for domestic brands instead of American brand names such as Jack Daniel’s. REUTERS

US Ambassador to Canada Pete Hoekstra stated during a Washington state conference last month that the alcohol boycott contributes to why Trump and administration officials have characterized Canada as “mean and nasty to deal with.”

White House spokesman Kush Desai told The Post on Thursday that as Trump’s “pro-growth policies of deregulation and The One Big Beautiful Bill’s tax cuts take effect, it’s going to be bottoms up for American distillers, brewers, and winemakers.”

Alberta had briefly softened its stance, resuming American alcohol purchases in June to help ease trade negotiations, according to Dale Nally, the province’s minister responsible for reducing bureaucratic barriers.

Despite the 25% tariff, some Canadian consumers scoopped up American products.

US winemakers are also reporting a sharp drop in exports to Canada amid trade tensions. PopOff – stock.adobe.com

Jasmeen Grewal, proprietor of Platina Liquor in Calgary, reported that American wine sales increased 30% in recent weeks, with bourbon sales up 7%.

She noted customers from other provinces are stockpiling Bread & Butter Cabernet Sauvignon and products from California’s Josh Cellars.

“People are scared that maybe they won’t be able to get them again,” Grewal said.

During the three months from April through June, Alberta’s wholesale purchases of US spirits fell 40% compared to 2024, while American wine purchases declined 55.5%, according to the Alberta Gaming, Liquor and Cannabis Commission.

The Post has sought comment from the Liquor Control Board of Ontario and the Alberta Gaming, Liquor and Cannabis Commission.

Credit: Source link

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