Canada’s alcohol ban dents US wine exports
Canada’s alcohol ban has dented US wine exports by $343 million in 2025.
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Canada’s restrictions on US alcohol have dealt a sharp blow to American wineries, cutting exports by $343 million and intensifying tensions ahead of key trade talks this year.
Trade data shows US wine exports to Canada fell 77% between 2024 and 2025 after provincial liquor stores removed American products in early 2025 in response to tariffs.
For years Canada was the largest foreign buyer of US wine, but most provinces stopped carrying American labels, leaving only limited sales in privatised markets such as Alberta and Saskatchewan.
Washington is pressing Ottawa to restore access, arguing the restrictions are damaging producers in key wine states including California as well as bourbon regions in Tennessee and Kentucky.
The dispute has become part of wider North American trade negotiations expected to feature in upcoming talks under the Canada US Mexico Agreement review cycle later this year, amid ongoing tariff tensions between the two countries.
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