U.S. Wine Exports to Canada Experience Sharp 76% Decline in 2025
In a significant blow to the American wine industry, exports to Canada dropped by a staggering 76.8 percent in 2025, contributing to an overall loss of $428 million for U.S. wine producers. This dramatic decrease is largely attributed to retaliatory measures taken by Canadian provinces and territories in response to former U.S. President Donald Trump's tariffs on Canadian goods.
Trade War Fallout and 'Buy Canadian' Movement
The decline in wine exports is part of a broader trend affecting American alcoholic beverage shipments to Canada. According to data from the U.S. Census Bureau, total exports in the wine, beer, and related products category fell from $1.7 billion in 2024 to $1.2 billion in 2025, representing a 26 percent overall decline. Wine exports alone decreased by one-third during this period, plummeting from $1.3 billion to $850 million.
The situation escalated when Canadian provinces and territories began removing U.S. wine and spirits from store shelves in March 2025, directly responding to Trump's trade policies. While Alberta and Saskatchewan resumed selling American alcohol in June, other provinces maintained restrictions, with Ontario Premier Doug Ford stating the ban would remain as long as Canadian tariffs were in place.
Impact on American Producers and Canadian Response
Carlton McCoy, CEO of Napa Valley-based Lawrence Wine Estates, explained to Robb Report that "this situation is a combination of recent happenings in global trade policies as well as a generally negative sentiment of any products made in the U.S., not just wine." The trade tensions have created what McCoy described as confusion, uncertainty, and hostility toward American products in international markets.
Meanwhile, the 'buy Canadian' movement has gained momentum, with liquor board data from all four of Canada's key wine-producing provinces showing increased demand for local products. Several provinces, including Nova Scotia and Quebec, have been selling their existing U.S. stock with proceeds directed to charitable causes.
Broader Economic Consequences
The economic impact extends beyond wine alone. Alcoholic beverages excluding wine decreased from $3.1 billion to $2.8 billion between 2024 and 2025, resulting in an additional $215 million loss. This brings the total decline in American beer and wine exports to $472 million for 2025 compared to the previous year.
Before the trade tensions, Canada represented the largest single nation market for U.S. packaged exports, according to BMO's analysis of United States and Canadian wine businesses. The current situation illustrates how geopolitical decisions can dramatically reshape international trade relationships and market dynamics in relatively short timeframes.
