Republicans Vow to Investigate Canada Over US Alcohol Boycott

A sign announcing the removal of American-made products hangs from a shelf at the 100 Queens Quay East LCBO outlet in Toronto on Tuesday, March 4, 2025. (Photo: Laura Proctor /The Canadian Press via AP)

A Republican congresswoman has proposed an investigation into Canadian provinces’ ongoing boycott of American booze, enacted over a year and a half ago in response to the Trump administration’s tariff threats.

On Monday, Claudia Tenney (NY-24) introduced the Combating Attacks on our National Alcoholic Drinks by Allies Act, pointedly referred to as the CANADA Act. If passed, the US Trade Representative would be compelled to investigate whether Canada’s provincial liquor boards are in violation of the Trade Act of 1974.

The dispute dates back to early last year, when Ontario Premier Doug Ford ordered his province to remove American alcohol from its shelves. A majority of Canadian provinces soon followed his lead, plunging American booze exports to the country by 85% in the second quarter of 2025, according to the Distilled Spirits Council. Ford has said he’ll rescind the ban “in a heartbeat” if the US and Canada reach a trade agreement, though negotiations with American officials have continued to move slowly.

“Canadian provinces cannot be allowed to hold American wineries, breweries, and distilleries hostage and attempt to ransom them,” Tenney said in a news release.

“Nearly all of Canada’s provincial liquor boards have unfairly targeted U.S. producers and harmed hardworking American businesses due to unrelated policy issues. Beyond the harm they’ve caused to American businesses, these prohibitions are an active impediment to a productive and smooth USMCA renegotiation process.”

The legislation is supported by the American Craft Spirits Association, the Wine Institute and Wine America, all of whom have continued to lobby officials for a quick end to the trade war.

“For too long, America’s craft distillers have been caught in the middle of a trade dispute that has nothing to do with them,” ASCA CEO Emily Pennington added. “We appreciate Congresswoman Tenney’s leadership in bringing renewed attention to the discriminatory treatment of U.S. craft spirits in Canada and hope this legislation encourages serious negotiations that restore fair market access for American producers.”

American alcohol bans are currently in place in every Canadian province except Alberta and Saskatchewan.

In some regions, the boycott has turned into an unprecedented sales opportunity for local producers. According to a recent news release from the Liquor Control Board of Ontario, Canadian-made product sales in the province have increased by 18% over the past year, while Ontario-made product sales have increased by over half a billion dollars, equal to around 20% growth. When customers visit a liquor store, maple leaf symbols demarcate which beverages are made in Canada, and employees have reportedly been given specialized training on how to discuss and market local brands.

If the CANADA Act is passed and the investigation determines wrongdoing, the US may respond with further tariffs and import restrictions.