Canada’s provincial bans on American alcohol erased $536 million in US export revenue in 2025, the Distilled Spirits Council of the United States told a federal trade panel Wednesday, and the industry is warning the damage is spreading to American jobs.
Chris Swonger, president and CEO of the Distilled Spirits Council, presented the figures to the Section 301 Committee under the Office of the US Trade Representative.
Total US alcohol exports to Canada fell from $744 million in 2024 to $208 million in 2025 — wine from $460 million to $103 million, distilled spirits from $238 million to $89 million, beer from $47 million to $17 million. The “trade frictions” have caused domestic spirits sales to record their first decline in decades and cost US distilleries nearly 1,000 jobs — 3.5% of the workforce — between September 2024 and September 2025.
Sponsored · Cambria Gold Mines
“Even the threat of tariffs creates uncertainty, negatively impacting exports,” Swonger said.
The bans began in February and March 2025 after Trump imposed 25% tariffs on Canadian goods. Ontario was first: Premier Doug Ford ordered the LCBO — one of the world’s largest alcohol purchasers, selling approximately $965 million in US products annually — to clear its shelves of all American brands across more than 3,600 products from 36 states.
All but Alberta and Saskatchewan followed. The bans survived a partial CUSMA deal exempting roughly half of compliant goods from tariffs, with provinces holding firm on full tariff removal before restoring American products.
“American alcohol will only go back on shelves when the US removes its tariffs. I just do not trust President Trump,” Ford said.
Sponsored · Selkirk Copper Mines
Read: Ford Won’t Budge on US Alcohol Ban Until Tariffs Drop
Brown-Forman, maker of Jack Daniel’s, reported Canadian organic net sales fell more than 60% in the first half of fiscal 2026. Jim Beam paused production at its main US distillery after slumping demand created a whiskey glut. Minnesota’s Phillips Distilling moved some production of its Sour Puss liqueur to a Montreal contract manufacturer specifically to circumvent the ban.
The Vancouver International Wine Festival in March featured just six US wineries — less than half the usual number — with the festival attributing the absence “entirely to the current ban on US alcohol in British Columbia.”
Read: US Commerce Secretary Pressures Canada Over Alcohol Ban as Trade Tensions Escalate
The USTR flagged the bans as raising “serious concerns” and said the administration would continue to “press Canada” for their removal. US Trade Representative Jamieson Greer warned in April that lifting the bans is a key condition for a successful CUSMA review.
Canadian and US negotiators were close to a steel and aluminum agreement last October before Trump ended those talks, citing anger over an Ontario government anti-tariff television ad. American booze has become one of the few non-tariff irritants that Canada has shown no willingness to concede without a comprehensive deal.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
