<p>American alcohol exports to Canada have decreased by more than 60% due to the country’s boycott of American booze, the Wall Street Journal <a href="https://www.wsj.com/business/us-alcohol-industry-canada-boycott-71dbd1e0?gaa_at=eafs&amp;gaa_n=ASWzDAgMKxl1Z42FZE0H9vsKxyx6UHtLImhkvrEg4LDxFp6TPl0_kT_uF-qD53mhao4%3D&amp;gaa_ts=689e10c1&amp;gaa_sig=q2KnwkppwNBI9ovAt-qltsHtxxlAc7IiEfamB99ruYjh5YD_vMPlpPZiqX6IzhRnmYH9eWs57RGoFdtbc5Zn2Q%3D%3D" target="_blank" rel="noopener">reported</a> on Thursday.</p>
<p>Several Canadian provinces, which regulate the sale of liquor in Canada, initiated boycotts in response to President Donald Trump imposing a <a href="https://abcnews.go.com/Business/timeline-trump-tariffs-canada-mexico-china/story?id=119506883" target="_blank" rel="noopener">25% tariff</a> on Canadian goods in February. Liqueur stores stopped ordering new shipments and replaced American products on their shelves with Canadian ones.</p>
<p>The Distilled Spirits Council, an alcohol industry group, estimated exports of American distilled spirits to Canada in the first six months of 2025 were down about 62% from the same period the year before, while exports of American wine were down 67%.</p>
<p>The Wine Institute, a trade group representing California-based wineries, estimated that in six months this year, American wineries lost more than $173 million in export value. In 2024, Canada bought up 35% of American wine exports, making it the industry’s largest export destination.</p>
<p>Robert Cullins, CEO of Baltimore-based Sagamore Spirit, estimates that the company will lose out on $2 million of revenue this year. “We’re a small craft distillery, so a couple of million dollars is pretty significant.”</p>
<p>One California vineyard, Hope Family Wines, says their sales have fallen by 10% so far. “It’s definitely going to hurt us personally,” Gretchen Roddick, the executive vice president, stated.</p>
<p>Meanwhile, Ontario announced that sales of Canadian brands have jumped by 14%.</p>
<p>Alberta participated in the boycott for three months before replacing it with a 25% tariff, claiming they wanted to improve the tone of trade talks between the two countries, according to Dale Nally, the province’s minister of red tape reduction.</p>
<p>The booze boycott is one of the reasons Trump has called Canada “<a href="https://www.ctvnews.ca/canada/article/trump-thinks-canadians-nasty-for-avoiding-us-travel-banning-booze-ambassador/" target="_blank" rel="noopener">mean and nasty to deal with.</a>”</p>
<p>Canada failed to reach a trade agreement with the US before Trump’s August 1st deadline, meaning that any products not covered under the United States -Mexico-Canada Agreement — about <a href="https://www.cbc.ca/news/politics/canadian-exports-tariff-free-trump-us-trade-1.7604415" target="_blank" rel="noopener">60%</a> of products — will be subject to 35% tariffs. This puts Canada on the <a href="https://finance.yahoo.com/news/live/trump-tariffs-live-updates-117-year-high-in-volume-at-busiest-port-in-the-us-200619178.html" target="_blank" rel="noopener">higher end</a> of the tariff scale.</p>
<p>There is currently no sign of ongoing negotiations between the two countries.</p>
<p>“We’ll speak when it makes sense,” Canadian Prime Minister Mark Carney told reporters last week.</p>
<p>He warned the United States that Canadian investment in the country could decline without a deal: “Canada is the second-largest investor in the United States today in the world. We have 40 million people.”</p>
<p>“That puts in context the state of the relationship,” he said. “Without an agreement, there will be less by definition.”</p>
<p>Trump has not commented on the situation or hinted at future trade talks. Shortly before the August 1st deadline, he <a href="https://www.politico.com/news/2025/07/28/canada-us-trade-talk-inside-drama-00480177" target="_blank" rel="noopener">stated</a> that “We haven’t really had a lot of luck with Canada. I think Canada could be one where they’ll just pay tariffs. It’s not really a negotiation.”</p>

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The American Alcohol Industry is Suffering From Canada’s ‘Mean And Nasty’ Boycotts