In a trade war that has spilled into the liquor aisle, Canadian provinces pulled U. S. alcohol from government-run shelves and kept most of those bans in place. The move, tied to President Donald Trump’s threats involving Canada and new tariff pressure, has shifted buying habits and strengthened demand for domestic spirits. Officials, industry groups, and producers are now watching whether the pressure eases or hardens further in the weeks ahead.
U. S. alcohol exports to Canada fall sharply
U. S. spirits exports to Canada fell more than 70 per cent year-over-year between March and December 2025, underscoring how quickly the trade war has hit a major market. The Distilled Spirits Council of the U. S. said the drop reached 70%, from $203 million in the March-to-December 2024 period to $60 million in the same stretch of 2025.
Canada’s action followed retaliatory steps after Trump took office in 2025 and placed tariffs on imports of steel, aluminum, and other products from Canada. In response, most Canadian provinces pulled liquor produced in America from government-run stores, leaving only Alberta and Saskatchewan with bans lifted so far.
All but two provinces still have bans, and shoppers have been met with signs urging them to “Buy Canadian Instead” and “For the good of Ontario. For the good of Canada. ” The shift has been especially visible in the alcohol aisle, where the trade war has pushed consumers toward homegrown grains and domestically made spirits.
Canadian producers see stronger sales
At Maverick Distillery Limited in Ontario, CEO Craig Peters said the change has produced a sharp lift in sales. He said vodka sales rose about 100% on the year, while whisky sales climbed about 300% through the Liquor Control Board of Ontario network and direct sales.
“A lot of Canadians are pretty upset about this whole business, so as a result, there’s huge local support, ” Peters said. He called the trade war “very unfortunate” and said he feels for people affected on both sides, from Canada to Kentucky.
The broader pattern appears to favor Canadian producers while overall alcohol consumption is down. That trend is global, but in Canada the combination of provincial bans and consumer backing has redirected demand toward domestic labels.
Industry pressure builds in Washington
In the United States, the Toasts Not Tariffs Coalition, representing 58 associations across the alcohol industry and related sectors, submitted comments to the U. S. Trade Representative over Section 301 investigations that could lead to new or expanded tariffs. The coalition urged exempting wine and distilled spirits from any current or future tariffs and sought the permanent return of U. S. wines and spirits across all of Canada’s provinces.
The group said fair and reciprocal access to markets would help drive manufacturing growth, increase exports, and support jobs across the supply chain. It added that the U. S. hospitality sector is under strain from inflation, high food costs, weaker consumer confidence, and fragile employment growth.
What happens next in the trade war
The immediate question is whether the Canadian bans remain in place or become a bargaining chip in broader trade talks. For now, the trade war is still reshaping sales, supply chains, and consumer tastes, with Canadian provinces keeping U. S. alcohol off shelves and domestic producers benefiting from the shift.
As the dispute continues, both industry groups and producers are pressing for a resolution that could restore exports and reopen markets. Until then, the trade war remains a live force in the alcohol business on both sides of the border.
