U.S. wine exports to Canada plunged by 76.8 percent in 2025, fueling a staggering US$428 million loss amid escalating trade tensions and a surging “buy Canadian” campaign.
Sharp Decline in Overall Exports
American beer and wine exports fell by US$472 million last year, marking a 26 percent drop from 2024 levels, according to U.S. Census Bureau data. Wine shipments specifically decreased by one-third overall, with exports tumbling from US$1.3 billion in 2024 to US$850 million in 2025—a 33.5 percent decline largely driven by reduced sales to Canada, previously the top market for U.S. packaged wine.
The broader category of wine, beer, and related products, including cider and sparkling wine, saw exports shrink from US$1.7 billion to US$1.2 billion. Other alcoholic beverages dropped from US$3.1 billion to US$2.8 billion, resulting in an additional US$215 million loss.
Carlton McCoy, CEO of Napa Valley-based Lawrence Wine Estates, attributes the downturn to “a combination of recent happenings in global trade policies as well as a generally negative sentiment toward any products made in the U.S., not just wine.”
Canadian Provinces Respond to Tariffs
In March 2025, several Canadian provinces and territories removed U.S. wine and spirits from liquor store shelves in retaliation to U.S. tariffs on Canadian goods. Alberta and Saskatchewan restored sales in June, but full recovery requires broader reopenings.
Provinces like Nova Scotia and Quebec continue selling remaining U.S. stock, directing proceeds to charity. Ontario Premier Doug Ford affirmed on February 10 that the ban persists until tariffs lift: “Get rid of it, and we’re good to go.”
Boost for Domestic Canadian Wine
The restrictions have spurred demand for local wines. Data from the Liquor Control Board of Ontario (LCBO) reveals a 19 percent rise in Canadian wine sales across varietals since the measures began, with Ontario VQA wines surging over 56 percent—reds up more than 60 percent and whites also gaining.
Marie Cundari, senior buyer of Ontario wines at the LCBO, describes it as “a very explosive growth.”
