Canada will remove a 25% retaliatory tariff on California wine and other U.S. goods starting September 1, aiming to ease trade tensions with the United States. The tariffs were initially imposed in response to U.S. duties on Canadian steel and aluminum.
While the removal of these tariffs is expected to provide some relief for California winemakers, industry representatives say that broader restrictions continue to harm American producers. According to the Wine Institute, bans at the provincial level still prevent U.S. wine, beer, and spirits from entering most of Canada’s market. Prior to these measures, Canada was responsible for about 35% of all U.S. wine exports, representing more than $1.1 billion in retail value.
Wine Institute CEO Robert P. Koch stated on August 22: “We’re encouraged by the recent engagement from President Trump and Prime Minister Carney and today’s announcement that Canada will be removing its tariff on U.S. wine. This is an important first step in putting U.S. wines back on equal footing with imports from all other major wine regions.”
“But the job isn’t finished yet. Provincial sales bans are still blocking U.S. wines from reaching Canadian shelves across most of Canada. Lifting these remaining barriers would bring relief to U.S. wineries that have been shut out of this important market and also allow Canadian wine lovers to once again enjoy their favorite American wines. We urge both governments to make that happen quickly.”
Last spring saw provinces across Canada removing American alcoholic beverages from stores as part of a push to promote domestic products in response to actions by President Trump. In early August, Quebec’s liquor board indicated it might need to destroy $300,000 worth of unsold American alcohol due to approaching expiration dates after months in storage.
Industry data show significant declines in exports; by mid-August 2025, shipments of U.S.-made distilled spirits to Canada had dropped by 62%, while wine exports fell by 67% during the first half of the year compared with previous periods.
The Wine Institute estimates that American wineries lost over $173 million in export revenue during the six months when counter tariffs were enforced.
