Some Canadian Wineries Willing to Welcome Back US Wine If It Helps End Tariffs

(Photo: Sergey Pivovarov / Sputnik via AP

Some Canadian wineries say they would support bringing American wine back to provincial liquor store shelves if doing so helps Canada secure relief from looming U.S. tariffs.

The proposal comes as Canadian and U.S. officials negotiate ahead of an Aug. 19 deadline for a new round of tariffs threatened by President Donald Trump. Some Canadian political leaders have suggested that lifting restrictions on American alcohol could be part of a broader trade agreement.

Michael Kaiser, executive director of WineAmerica, told Global News that American wineries have been caught in a trade dispute between the two countries.

“We get caught in these trade disputes that don’t really involve us,” Kaiser said.

Canadian provinces and territories began removing American alcohol from government-run liquor stores in March 2025 after Trump imposed 25% tariffs on Canadian goods. The move was intended as retaliation.

Now, with Trump threatening a fresh 50% tariff on Canadian imports, some Canadian officials are reconsidering whether the restrictions should remain.

Quebec Premier Christine Fréchette said earlier this week that she would be open to allowing U.S. wine back onto store shelves if Canada makes progress on trade issues, including reducing tariff barriers affecting sectors such as forestry, aluminum and manufacturing.

Norman Beal, president of Ontario’s Peninsula Ridge Estates Winery, told Global News he would also support the move if it helped reduce tariffs affecting the broader Canadian economy.

“As much as it’s being a benefit to us, the damage to our overall economy is much worse,” Beal said.

The potential return of American wine could benefit U.S. producers that have lost access to one of their largest export markets.

Kaiser said Canada is the largest market for American wine outside the United States, particularly for producers in California, Oregon and Washington. He said American wineries have lost millions of dollars in sales since the products were removed from Canadian liquor stores.

The restrictions have also created a problem for U.S. wineries with excess inventory, Kaiser said, because producers that can no longer sell as much wine in Canada are competing more heavily for shelf space in the United States.

“If you lose that particular market but still have the same amount of wine that you need to sell, it’s a problem to try to figure out where to sell that,” Kaiser told Global News.

Canadian wine producers, meanwhile, have spent the past 18 months benefiting from increased consumer attention to domestic products.

Aaron Dobbin, president and CEO of Wine Growers Ontario, told Global News that Canadian producers have been preparing for the possibility that American wine will eventually return.

“It’s not a matter of if, it’s just when,” Dobbin said.

He said the absence of American wine has given Ontario producers an opportunity to attract consumers who previously purchased U.S. products.

“Ontarians have embraced buy local, buy Canadian, buy Ontario across all of their purchases, including wine,” Dobbin said. “I expect that that will have some lasting resonance with them and they will continue to look to support local.”

A survey released by Abacus Data earlier this month found that 69% of respondents in British Columbia, Ontario, Manitoba and the Maritime provinces believed their governments should maintain restrictions on American alcohol.

That could give Canadian wineries some protection if U.S. wine returns to liquor store shelves.

Beal said the restrictions have encouraged some consumers to try Ontario wine for the first time.

“We strongly believe that this was a big opportunity for us here that folks tried [Ontario] wines for the first time and said, ‘Wow. These are great wines,’” Beal told Global News.

The loss of Canadian consumers is also a concern for American wineries. Kaiser said some Canadian consumers have contacted U.S. producers to express opposition to the Trump administration’s trade policies.

“Consumers have either moved on to other products or they have a deep-seated dislike of our country’s leadership and, unfortunately, our products are what is getting impacted by it,” Kaiser said.

Still, he said American wine producers would welcome the opportunity to return to the Canadian market.

“I think if we get our products back on their shelves, that could also be a step towards the goodwill being reestablished,” Kaiser said.