For countless Canadians, the familiar ritual of a Friday evening drink—a crisp glass of Champagne, a perfectly balanced Negroni, or a reasonably priced local pint—is facing a subtle but significant shift. The cause isn't a change in taste, but a change in trade policy emanating from south of the border.
Trade Policy Pours into Your Glass
New alcohol tariffs, part of broader U.S. trade actions initiated under President Donald Trump, are quietly altering the landscape of bars and restaurants across Canada. These import taxes are influencing everything from menu offerings and bartender recommendations to what patrons are ultimately willing to order, making global economics tangible at the bar counter.
If you've sensed your bar tab creeping upward, you're not imagining it. Charlotte Voisey, executive director of the Tales of the Cocktail Foundation, confirms the trend is industry-wide. "There is definitely the impression that bar prices have increased this year across the industry," Voisey noted. "It feels less like an isolated shift within hospitality and more reflective of wider economic pressures."
In response, establishments are deploying value-driven strategies like extended happy hours and promotional cocktails to soften the financial blow for customers. Notably, even luxury hotel bars are adopting these tactics, signaling that cost pressures are universal.
The Unavoidable Cost of Imported Staples
The core challenge for the industry is fundamental: a large portion of what fills Canadian glasses is imported. Categories like Champagne from France, tequila from Mexico, Scotch whisky from Scotland, and Italian amaro are legally tied to their regions of origin. There are no local substitutes.
Alex Jump, director of operations and owner at The Peach Crease Club in Denver (whose experience reflects broader North American trends), emphasized the ongoing impact. "Tariffs are certainly going to continue to impact the bar and cocktail industry in 2026," Jump said. "The majority of the items we sell at the bar are international."
The ripple effects extend beyond the liquid itself. Tariffs also apply to imported glassware, furniture, and bar supplies, adding layers of cost. Jump recalled a specific instance where a $90 tariff charge was applied solely to a delivery of glassware when opening her bar.
While some operators are pivoting to domestic wines or spirits to maintain affordability, many refuse to compromise on diversity. "We do not plan to remove foreign products from our menu," Jump stated. "Doing so would be detrimental to the diversity of our offerings and the quality of our menu."
Shrinking Margins and Tough Choices
The financial squeeze is acute for business owners. Vic Christopher, president and founder of Clark House Hospitality in Troy, New York, explained that a seemingly small increase of about a dollar per bottle for European wines compounds rapidly in the restaurant business, where profit margins are often as slim as 5%.
"It's death of a thousand cuts," Christopher said, describing how tariffs combine with rising costs for insurance, utilities, and labor. This is particularly punishing for independent operators without large corporate scales to absorb increases.
From a legal standpoint, the disruption is profound. Marbet Lewis, founding attorney at Spirit Law Partners, highlighted the dual impact on consumers: "higher costs and fewer choices." Spirits have been hit especially hard, with some once-standard bottles drifting into luxury status. Retailers and bars are narrowing their inventories, not out of preference, but necessity.
What This Means for Canadian Drinkers
Looking ahead to 2026, the classic imported cocktail isn't disappearing, but its presence and price point are evolving. Champagne and premium tequila may become more selective, celebratory items rather than everyday indulgences. This shift could create more space for Canadian-made whisky, rum, vodka, and emerging domestic agave spirits on menus.
Happy hour specials are likely to become less of a perk and more of a crucial strategy for bars to attract customers. While political trade wars may seem distant, their consequences are now being measured in ounces and dollars every time a toast is raised in bars across Canada and beyond.
