U.S. bans on Canadian booze hit producers on one of the trade war's thorniest fronts
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bans → hit → fronts
As of 12:01 a.m., some Canadian products, including dairy, motorcycles and booze, can no longer cross border
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products → include → border
Distiller James Lester has grown used to the on-again, off-again chaos of the trade war, but he's now grappling with a new kind of treatment — being shut out of the U.S. market altogether.
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he → grow → market
"It's a little sad to be honest," said Lester, founder and operator of B.C.-based distillery Sons of Vancouver.
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Lester → say → Vancouver
As of Tuesday at 12:01 am ET, U.S. bans are in effect on some Canadian alcohol products, dairy byproducts, motorcycles and molasses, shutting certain producers out of the U.S. market entirely.
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bans → shut → market
Sons of Vancouver usually ships a few pallets of wheated rye to the U.S. each year — less than 10 per cent of their business overall.
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Sons → ship → business
But the change is a disappointment for Lester, as he'd been working hard to forge relationships south of the border and expand the business there.
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he → work → business
"We still have a little bit available online in the U.S., but that'll be the last of it for who knows how long."
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who → know → it
Trump banning import of Canadian booze, motorcycles, other goods into U.S.
The incoming U.S. import bans on Canadian alcohol, whey, molasses and motorcycles, by the numbers
It leaves Lester with few options for his American consumers, since they wouldn't be able to take it back to the States with them even if they came to Canada to buy a bottle.
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they → ban → bottle
The import ban heightens the trade war on one of its thorniest fronts — alcohol, which has become a hot-button issue for politicians on both sides of the border throughout the tariff battle.
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which → heighten → battle
Small makers could be hurt most
With import bans stopping the flow of some alcohol products in their tracks, there are lots of individual business owners who stand to be hurt by the ban, according to international trade lawyer with KPMG Law, Robert Glasgow, even if the macro impact isn't massive.
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impact → hurt → Law
Spirits producers could be hit particularly hard because Canada sends more liquor to the U.S. than it does beer or wine.
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it → hit → beer
The U.S. imported $673 million US worth of spirits from Canada in 2025, compared to $62.1 million US worth of wine and just $19.2 million US worth of beer that same year, according to trade data from the U.S. Census Bureau.
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U.S. → import → Bureau
Spirits Canada, the national trade association for the spirits industry, says about 93 per cent of spirits sent outside of Canada are destined for the States — making the loss of the "very important" U.S. market concerning, according to the group's president, Cal Bricker.
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loss → say → president
But the ban won't apply to barrels of certain kinds of liquor over a certain volume, and tariffs were removed from bulk shipments of certain whiskies and liqueurs when the heightened trade measures were announced earlier this month.
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measures → apply → whiskies
That move will spare big, multinational spirits companies that have bottling and mixing facilities on both sides of the border from some of the impact of the ban, according to Glasgow — leaving smaller players feeling the brunt.
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that → spare → brunt
"There's going to be a number of breweries, distilleries, and vineyards — largely the smaller, more independent shops that are more dependent on U.S. Trade and U.S. markets — that this could have some significant impacts for," Glasgow said.
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Glasgow → be → impacts
But others in the wine making business have said the 50 per cent tariff rate effectively excluded Canadian products already, and industry groups are calling for more government support to help Canadian vineyards.
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groups → make → vineyards
Alcohol has been a focal point in the trade battle since the start, when most Canadian premiers pulled U.S.-made bottles from the shelves of provincially-run liquor stores in March 2025 in response to the U.S. imposing tariffs on Canada.
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U.S. → pull → Canada
The move drew criticism from political leaders in certain regions of the U.S. where certain types of spirits are made — like Kentucky, where Governor Andy Beshear appealed to leaders in this country to rethink the move as it threatened bourbon makers in his state.
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it → draw → state
- Graphics
How much damage have Canada's booze bans done to the U.S. wine industry?
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bans → do → industry
Ice wine producer in Ontario's Niagara region says U.S. buyers 'flabbergasted' by Trump's booze ban order
The White House also cited Canada's "discrimination" against American alcohol, as well as dairy and autos, when announcing new 50 per cent tariffs in July, which hit Canadian booze among other products, including everything from milk to paper products to synthetic wigs.
Despite booze making up a relatively tiny portion of Canada-U.S. trade, Concordia University economics professor Moshe Lander says it's become a thorny issue in the trade war in part because it's so personal.
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it → say → part
"We identify ourselves at least in part by the stuff that we drink," Lander said.
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Lander → identify → that
Brands like Foster's in Australia or Guinness in Ireland are more than just drinks, they're part of a country's identity, says Lander.
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Lander → say → identity
He adds the same is true for Kentucky bourbon and California wine, making them politically effective targets.
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them → add → bourbon
And despite consumers having a taste for their favourite brand of wine or bourbon, it's relatively easy for consumers to substitute with a local bottle and still have a good night out, KPMG's Glasgow says, making it a smart product for policy makers to target.
"That's a type of retaliation that hits … the country that you're retaliating against harder than it hurts your own markets," Glasgow said.
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Glasgow → have → markets
A year and a half-long hangover
Joan Kautz, head of global sales and marketing for Californian winemaker Ironstone Vineyards, says she understands the strong message sent by taking U.S. alcohol off shelves in Canada.
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she → say → Canada
"I don't like it, but I understand it," Kautz said.
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Kautz → like → it
The fight over alcohol has meant wines from the 2,500-hectare vineyard in Lodi, Calif., haven't been available in Canada for a year and a half.
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Lodi → mean → year
Kautz says they're still selling some products to Alberta, where private-run liquor stores aren't restricting U.S. booze, but it's a fraction of the business Ironstone used to send north of the border.
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Ironstone → say → border
Historically, she says 20 per cent of the winery's export business went to Canada, making it their most important market outside of the U.S.
"Obviously, it hits financially," Kautz said.
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Kautz → say → U.S.
"We've been building the market for 30 years and it all went away overnight."
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it → build → years
Her family's business exports to dozens of countries, and has been able to focus on other markets as Canadian demand dried up.
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demand → export → markets
But for other wineries, the impacts have been greater — some have reportedly filed for bankruptcy or decided to close and sell their vineyards in recent months.
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some → file → months
Across booze categories, exports from the U.S. to Canada for 2025 dropped after bottles were pulled from shelves, with spirits sales falling by 70 per cent and wine exports dropping 87 per cent according to the Distilled Spirits Council of the U.S.
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exports → drop → U.S.
As a result of the economic impact, the council has called on U.S. President Donald Trump's administration to resolve the feud over over alcohol, so long-time trading partners can raise a glass together again.
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partners → call → glass
Kautz is still hopeful that will happen eventually.
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that → happen → ?
She expects Canadian consumer's memories won't be too short, and they'll still have a taste for California wine when they can eventually get their hands on a bottle.
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they → expect → bottle
"There'll be a group that's probably slower to the table," Kautz said.
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Kautz → say → table
"But you have to be hopeful."
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The Aporia
