US wine trade war kicks off in Canada

The US-Canada wine trade is in turmoil after President Trump imposed 25% tariffs on Canadian goods. In response, Canadian provinces have pulled American wines from liquor store shelves, sparking a major shake-up in the industry and boosting local producers.

The Liquor Control Board of Ontario, along with other provinces, has banned US wine sales, affecting $1.1 billion in annual exports. This is a major blow for American winemakers, especially in California, who rely on Canada as their top export market.

Meanwhile, Canadian wineries are seizing the moment. With fewer US options available, local producers are seeing a surge in demand. Idustry leaders are calling on consumers to embrace homegrown wines, turning a trade dispute into an unexpected opportunity.

The US wine industry appears in trouble, not only is it in the process of losing exports, wine consumption in the US dropped 8% between 2023 and 2024. That’s according to data compiled by the Wine and Spirits Wholesalers of America’s SipSource report.