U.S. wine exports to Canada plunged 93% in April compared to the previous year, marking the steepest decline in over two decades, as Canadian provinces responded to U.S. tariffs by removing American alcohol from store shelves.
According to U.S. Census Bureau data, the sharp drop represents the largest year-on-year decrease since 2002, delivering a severe blow to one of the most critical international markets for American wine producers.
“Wine is in a crisis. There is an oversupply and weakening demand,” said Karl Storchmann, executive director of the American Association of Wine Economists, in an interview with Bloomberg. “But the dominant factor right now is the tariffs and the consequent collapse in exports to Canada.”
This drastic fall followed decisions by several Canadian provinces in March to ban American wine and spirits, in retaliation for the U.S. imposing a 25% tariff on Canadian goods. The bans included extensive removals of U.S. alcohol from government-controlled liquor stores.
In Ontario—the country’s most populous province, with nearly 40% of Canada’s population—the Liquor Control Board (LCBO) withdrew all U.S. wine and spirits from its 677 stores. The LCBO typically imports about US$1 billion in American alcohol annually. Ontario Premier Doug Ford acknowledged the action would inflict a “significant blow” to U.S. producers.
British Columbia followed suit on March 10, instructing provincial liquor stores to remove American products. By the next day, shelves were either cleared or covered with black cloth and signage urging consumers to “Buy Canadian Wine Instead.”
Canada was the largest overseas buyer of U.S. wine in 2024, accounting for roughly one-third of total U.S. wine exports, according to United Nations trade data. While some provinces have recently resumed limited imports, Canada maintains a 25% tariff on American wine.
Other key U.S. wine export markets also faced challenges in April. Exports to China dropped 30.5% year-on-year to US$4.54 million, according to Chinese customs data, amid ongoing tensions between Washington and Beijing.
China had imposed retaliatory tariffs up to 125% on U.S. goods, including wine, pushing effective tax rates to as high as 218.9% when combined with additional levies. Many Chinese importers halted orders entirely. Even after partial tariff reductions in subsequent negotiations, U.S. wine remains subject to a 39% base import duty, with total tax burdens exceeding 74%—over 30 percentage points higher than standard rates for imported wine.
This global tariff uncertainty continues to weigh heavily on the wine industry. Earlier this year, some U.S. buyers delayed purchasing Bordeaux en primeur releases due to the unclear trade environment.
Although the U.S. has postponed some planned tariffs and reopened trade talks with global partners, the long-term effects of these disputes continue to ripple through the international wine market.
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