Business

Trump bans Canadian alcohol imports

The United States has imposed sweeping import restrictions on Canadian alcoholic beverages in the escalating trade dispute between the two countries.

The bans go into effect on September 29 and were ​published on the White House’s website. They followed Canada’s retaliatory tariffs on US goods, which took effect after midnight on Tuesday.

Whiskies such as Crown Royal and Canadian Club and beers such as Molson are among the most popular Canadian alcoholic exports.

Canadian Prime Minister Mark Carney updated Canadians on his government’s response to US trade actions in a video posted on YouTube earlier this week.

“We have everything we need to pivot and prosper,” he said. “That pivot will come at a cost. There’s always a cost to action. But it doesn’t come close to the cost of standing still.

Carney said the goal of the policies was to come out stronger and more resilient so “no country can ever hold us hostage, and that we can live how we want to live.”

Wine Growers British Columbia President & CEO Jeff Guignard said: “This is an extraordinary and deeply disappointing escalation. BC wineries did not create this dispute, but they—and the relationships they have built with American customers—will bear the consequences.

“For the BC wine industry, the immediate export exposure is relatively modest, but the principle is enormously significant. Canadian wine producers have done nothing to warrant being shut out of the U.S. market.

We must not lose sight of the people behind these decisions. Trade measures may be debated in capitals, but their consequences are felt by small businesses and the families who own and operate them on both sides of the border. Canadian producers, American importers, distributors, retailers, and hospitality businesses will all be hurt by this decision.”

It’s been a rocky road for distillers and brewers since Canadian provinces removed US spirits from retail shelves in March 2025 in retaliation to US tariffs on Canadian goods.

US exports to Canada fell more than 70% year-over-year from the start of the retaliatory ban in March 2025 through December 2025. Alberta and Saskatchewan are the only two provinces that have since lifted their bans. However, Saskatchewan Premier Scott Moe recently announced a 50% tariff on American ‌alcohol.

Distilled Spirits Council of the United States President & CEO Chris Swonger said: “For more than a year and a half, American distillers have shouldered the brunt of this trade dispute. Canadian provinces’ removal of US spirits from store shelves caused US spirits exports to Canada to fall by more than 70%.

“We know firsthand the damage these measures can cause, and we do not wish to see Canadian distillers face similar hardship.  We are hopeful that this action will bring both governments back to the negotiating table before the ban on Canadian spirits imports takes effect.

“We urge leaders on both sides of the border to reach a resolution that restores US spirits to retail shelves throughout Canada and returns the spirits sector to a permanent zero-for-zero tariff framework.”

US Trade Representative Jamieson Greer has spoken with Dominic LeBlanc, Canada’s minister responsible for bilateral U.S. trade, over the past couple of days, and the pair are expected to speak again soon to try and find an alternative path for the two countries, according to Reuters.

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Categories: Business