Whiskey Assn. Backs Call for USTR Probe into Canadian Boycott of American Alcohol

Saying "Congressional attention to Canadian provincial restrictions on American alcoholic beverages is both timely and warranted," Michael Bilell0, president, American Whiskey Association, said the trade group "appreciates" Rep. Claudia Tenney's call for the U.S. Trade Representative to investigate Canadian provincial restrictions on American alcohol products.

The New York Republican's recently introduced bill seeks "to raise awareness of the impact these restrictions have had on American whiskey, as well as other actions by policymakers and stakeholders aimed at resolving this issue and restoring fair market access."

There's no doubt the economic damage to U.S. alcohol producers has been significant. But the bigger danger is that Canadians are developing a taste for both Canadian and foreign producers' alcohol. The longer this goes on, the greater the danger the loss of market share for U.S. producers will last well beyond the time the trade dispute is settled.

Not surprisingly, Canada has views itself as a victim, not a villain. Canadian provincial liquor boards removed U.S. alcohol products after President Trump, in February 2025, citing a "national security emergency," imposed 25% tariffs on Canada and Mexico.

Canada responded with its own retaliatory tariffs of 25% on $30 billion of U.S. goods. Canadian provincial leaders, led by Ontario's Premier Doug Ford, ordered their liquor boards to stop importing and selling U.S. alcohol.

In late April, Canadian Prime Minister Mark Carney said, "Issues such as decisions on which alcohol to put on the shelves - we can make progress very quickly on that with progress in other areas," such as U.S. tariffs on metals and automobiles."

From 2022 through 2024, Canada accounted for roughly 35% of U.S. wine exports, more than 15% of U.S. beer exports and as much as 13% of U.S. distilled spirits exports.

U.S. products represented more than 20% of Canada's alcohol imports, totaling $774 million, in 2024, according to Andrew Muhammad, a professor of agricultural economics at the University of Tennessee, Nashville.

Canadians haven't lost their thirst for alcohol. They've simply shifted to other nations, especially for wine. In 2024, American wine accounted for 21% of all imported wine in Canada; in 2025, after Trump imposed 25% tariffs on Canadian products, American wine accounted for just 5%. U.S. distilled spirits dropped to 10% from 24% and beer fell to 5% from 13%.

The danger, says UTenn's Muhammad, is that "if a trade ban becomes entrenched, it opens a way for consumers to develop a taste for domestic and other alternatives."

In 2025, Canadian imports of beer, wine and spirits from other countries increased by 9%, 15% and 7%, respectively. Bars, whose rail spots were locked up by big U.S. brands for decades, have completely reset and are now Canadian across the board.