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U.S. Steps Up Pressure on Canada to Lift Provincial Bans on American Alcohol

USTR Jamieson Greer has linked progress on the USMCA review to provinces removing the restrictions.

Overview

  • Since 2024, provinces including Ontario, Quebec and British Columbia have removed U.S. wine and spirits from government-run liquor stores in response to President Trump’s tariffs and trade rhetoric.
  • The administration has ramped up diplomatic pressure, with Greer warning last month that lifting the bans is a condition for securing a successful USMCA review this year.
  • Official data show sharp declines, with October U.S. wine exports to Canada down 84% year over year and spirits down 56%, while vintners report a 91% slide in U.S. wine sales to Canada since 2024.
  • Producers report major hits, as Brown‑Forman says Canadian organic net sales fell over 60% in the first half of fiscal 2026 and Phillips Distilling reports roughly a 70% drop and shifted Sour Puss production to a Montreal contractor.
  • Public backing remains strong, with a late‑December Nanos poll finding 73% of Canadians support keeping the bans, while Alberta and Saskatchewan continue sales through privatized systems.