‘We’re Just Farmers’: US Alcohol Makers Lament Being Used ‘As a Tool’ in Trump-Canada Tariff Battle

American winemakers and distillers are getting caught in the middle of the latest trade fight between President Donald Trump and Canada, as provincial bans on U.S. alcohol emerge as a key sticking point in negotiations over a new round of tariffs.

For some American producers, the bans have already turned once-reliable Canadian business into a costly waiting game.

Bill Easton, owner of Terre Rouge Wines in California’s Sierra Foothills, told CBC that his company once shipped cases of Syrah to Montreal every six weeks. A truck would arrive, collect another shipment and, six weeks later, a Canadian payment would land in his bank account.

That changed when Quebec pulled American alcohol from its shelves last year.

Now, Easton says he pays about $1,200 every four weeks to keep cases of his wine in a temperature-controlled warehouse in Canada, including bottles specifically labeled in English and French for the Quebec market.

Easton says they have wine that is labelled in both English and French specifically for the Quebec market — and those bottles are just sitting in a warehouse.

“I think we’re being used kind of as a tool for this negotiation. I’m not sure why we have this tariff battle going with Canada,” Easton told CBC. “We’re just farmers and winemakers selling wine to people who like what we do.”

The situation has put American alcohol producers directly in the middle of an increasingly contentious dispute between Washington and Ottawa.

Most Canadian provinces stopped distributing U.S. alcohol products early last year in retaliation for tariffs Trump imposed on Canadian goods. Now, with Trump threatening 50% tariffs on billions of dollars worth of Canadian imports, Prime Minister Mark Carney has asked provincial leaders to consider putting American alcohol back on store shelves as part of efforts to reach a broader trade agreement.

Some premiers have indicated they would consider lifting the bans if Canada gets a favorable deal. Others have been more reluctant, arguing that the restrictions give Canada valuable leverage in negotiations with the Trump administration.

Trump has repeatedly pointed to Canada’s treatment of American alcohol as one of the issues behind his latest tariff threat, arguing that Canadian provincial liquor systems discriminate against U.S. products.

The dispute comes at a steep cost for American beverage producers.

According to U.S. Census Bureau trade data cited by CBC, American wine exports to Canada fell by $343 million between 2024 and 2025, a 77% year-over-year decline. Canada had previously been the largest export market for U.S. wineries.

American spirits have also taken a major hit. The Distilled Spirits Council of the United States said bourbon exports to Canada fell about 60% from January through September compared with the previous year, dropping from 41.3 million to 16.4 million units.

The council has urged both governments to resolve the dispute and return the spirits trade to a “zero-for-zero” tariff framework.

“We encourage leaders on both sides of the border to reach a negotiated solution that gets American spirits back on retail shelves in all Canadian provinces,” DISCUS President and CEO Chris Swonger said this week.

The group’s position echoes concerns it has raised throughout the dispute, with American distillers arguing that they have become collateral damage in a broader fight over tariffs and trade policy.

The damage may also outlast the bans themselves.

Jana Mckamey, executive director of the Oregon Wine Growers Association, told CBC that producers need a stable trading environment if they are going to rebuild relationships with Canadian buyers.

“These international relationships take a long time to develop. It’s a great deal of investment and that can disappear overnight,” Mckamey said.

Some companies have already begun adapting to the new reality.

Phillips Distilling, the Minnesota company behind Sour Puss liqueur, signed a multiyear agreement last year to move production of the brand to Montreal’s Station 22 distillery. The company said it plans to keep production in Canada regardless of future U.S.-Canada trade policies because 98% of Sour Puss sales are in Canada.

And even if the bans are lifted, American producers may face another challenge: winning Canadian customers back.

Some Canadian consumers have said they will continue avoiding American alcohol after finding Canadian alternatives or choosing to maintain personal boycotts of U.S. products.

That means simply putting American bottles back on shelves may not immediately restore the business that existed before the trade fight.

For Easton, the uncertainty has already taken a major financial toll. He estimates the Canadian alcohol bans cost his winery about $500,000 in income last year.

He said he won’t get his hopes up about a potential resolution until he sees an agreement in writing.

“I’d just like to see things go back to the way they were,” Easton said. “I don’t know if that’s possible.”