Canada, once the largest importer of U.S. wines, has seen a dramatic decline in American alcohol imports, with wine shipments falling by 94% in April 2025 compared to the same month in 2024. This shift follows a series of provincial boycotts and the broader impact of the ongoing trade war between the U.S. and Canada. U.S. tariffs, particularly on wine, spirits, and beer, have significantly disrupted trade, with Canadian consumers pulling back on discretionary spending due to economic uncertainty.
The U.S. had previously accounted for about a third of Canada’s wine imports, but by April 2025, that figure dropped to just 4%. In Ontario, U.S. wines, which represented 20% of liquor store sales in early 2024, now make up only 15%. In addition, the broader alcohol market in Canada has suffered, with provincial alcohol sales declining by over $100 million across six provinces in the last quarter.
Beer imports from the U.S. have seen a less dramatic decrease, as many popular American brands are brewed in Canada. However, aluminum tariffs are driving up the cost of producing beer, potentially leading to higher prices later this year. The situation highlights the ongoing strain between the two countries, compounded by persistent economic challenges for Canadian consumers.
