Canadian Ban on US Alcohol Is ‘Clearly’ Working, Frustrating Trump, Former Trudeau Adviser Says

U.S. President Donald Trump (left) and Canadian Prime Minister Justin Trudeau arrive for a round table meeting during a NATO leaders meeting Dec. 4, 2019, at The Grove hotel and resort in Watford, Hertfordshire, England. (AP Photo/Evan Vucci, File)

A former adviser to ex-Prime Minister Justin Trudeau says Canada’s decision to keep American alcohol off store shelves is having its intended effect — and argues the country should not back down despite President Donald Trump’s latest tariff escalation.

Speaking to BNN Bloomberg, former Canada-U.S. relations adviser Diamond Isinger said provincial bans on U.S. beer, wine and spirits are “clearly yielding results” by putting economic pressure on American producers and drawing attention from the White House.

“It’s clearly yielding results. It’s clearly being noticed by the president,” Isinger said. “It’s something very frustrating for him, and it’s having very real economic effects on American producers.”

The comments come days after Trump signed an executive order imposing new 50% tariffs on certain Canadian exports while specifically criticizing Canadian provinces for continuing to block sales of American alcoholic beverages.

The White House cited the provincial restrictions as one reason for the latest trade action, arguing Canada continues to discriminate against U.S. alcohol producers.

Rather than lifting those restrictions, nine Canadian provinces this week signed a landmark agreement allowing direct-to-consumer alcohol shipments between participating provinces, a move aimed at strengthening Canada’s domestic economy while leaving the bans on U.S. alcohol in place.

Isinger said the provincial restrictions should remain until broader trade issues are resolved.

“We cannot continue to make significant concessions to the United States without seeing tangible results,” she said. “I hope the provinces remain strong.”

The remarks echo concerns raised by the U.S. distilled spirits industry following Trump’s tariff announcement. Earlier this week, the Distilled Spirits Council of the United States warned that escalating tariffs risk further retaliation and could continue hurting American distillers, whose exports to Canada have already fallen sharply since provincial liquor boards began removing U.S. products from shelves last year.

According to industry figures, exports of U.S. spirits to Canada declined by more than 70% after the retaliatory bans took effect in March 2025. Alberta and Saskatchewan are currently the only provinces that have restored sales of American spirits.

Isinger also suggested Canada could consider additional targeted economic measures if trade tensions continue, pointing to the country’s 2018 retaliatory tariffs on politically significant U.S. products such as Florida orange juice and Pennsylvania ketchup.

She argued the current dispute also presents an opportunity for Canada to strengthen internal trade and reduce barriers between provinces while negotiations with the United States continue.

Prime Minister Mark Carney met with provincial premiers this week to discuss Canada’s response to Trump’s latest tariff threats, with leaders publicly backing a unified national strategy as negotiations continue ahead of the proposed Aug. 19 implementation date for the new tariffs.