Trump’s Canadian Alcohol Ban Will Hurt US Hospitality Business, American Spirits Industry Warns

President Donald Trump speaks to reporters Sept. 29 at the White House in Washington, D.C., after meeting with top executives of AI firms. (AP Photo/Alex Brandon)

The Distilled Spirits Council of the United States released a statement Tuessday warning that the now-active U.S. ban on certain Canadian spirits and wine could further hurt American hospitality businesses as the trade dispute between the two countries enters the holiday season.

The ban took effect Tuesday and targets certain Canadian alcoholic beverages along with other Canadian imports. In a statement released as the restrictions took effect, DISCUS said restaurants, bars, retailers and consumers could become the latest casualties of the ongoing U.S.-Canada trade dispute.

“We appreciate the Trump administration’s commitment to encouraging Canada to reopen its market to American spirits and wine products,” DISCUS said. “However, as this ban on Canadian spirits and wines takes effect today, America’s restaurants, bars, retailers and consumers are being pulled further into a trade dispute that has already taken a significant toll on U.S. wine and spirits producers. This new ban on Canadian alcohol products will ripple throughout the U.S. hospitality sector at a time when restaurants, bars and retailers are preparing for the busy holiday season.”

DISCUS said the best outcome would be a negotiated resolution that returns American spirits and wine to Canadian store shelves while preserving consumer choice in both countries.

The group also pointed to the damage already suffered by U.S. beverage alcohol producers since Canadian provinces removed American wine and spirits from store shelves in March 2025.

According to DISCUS, U.S. spirits exports to Canada fell 70%, from $232 million to $72 million. U.S. wine exports dropped 87%, from $456 million to $60 million.

Only Alberta and Saskatchewan have since lifted their provincial bans on U.S. alcohol, according to DISCUS. Saskatchewan Premier Scott Moe announced a 50% tax on American alcohol earlier in September.

The latest U.S. action comes after months of escalating tariffs and retaliatory measures between the two countries.

The Toasts Not Tariffs Coalition, which includes 59 national and state organizations representing farmers, vintners, distillers, distributors, retailers, restaurants, bars and hospitality workers, sent a letter to President Donald Trump on Sept. 21 urging the administration to resolve the beverage alcohol dispute.

DISCUS said the coalition continues to support efforts to promote what it describes as fair and reciprocal trade for beverage alcohol products.

The trade group also cited Canadian government data showing the U.S. accounted for 93% of Canada’s total spirits exports in 2025, underscoring the importance of the cross-border spirits trade.

“The best outcome remains a negotiated solution that gets American spirits and wine products back on Canadian shelves, preserves consumer choice for consumers on both sides of the border and allows U.S. and Canadian hospitality businesses to focus on growth rather than becoming collateral damage in a trade dispute beyond their control,” DISCUS said.

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