‘It’s Outrageous’: US Commerce Secretary Trades Barbs With Senator Over Canada’s American Alcohol Ban

U.S. Commerce Secretary Howard Lutnick testifies before the Senate Committee on Appropriations, Subcommittee on Commerce, Justice, Science, and Related Agencies during a hearing on the proposed fiscal year 2027 budget for the Department of Commerce in the Dirksen Senate Office Building on April 22, 2026 in Washington, D.C. (Photo: Samuel Corum/Sipa USA)(Sipa via AP Images)

On Wednesday, a war of words erupted in the Senate between Commerce Secretary Howard Lutnick and New Hampshire Senator Jeanne Shaheen, who questioned the Trump administration’s rhetoric on Canada and its multi-billion-dollar implications for the American alcohol industry.

In an Appropriations subcommittee dedicated to President Trump’s 2027 budget request, Senator Shaheen noted that international visitors to the U.S. declined by 5.5% last year, adding that her home state of New Hampshire was among the hardest hit. Tourism is the second-largest industry in NH, both by revenue and employment. Visitors from Canada, however, dropped by 30% in 2025, due to what Shaheen described as “the loss of trust and goodwill because of this Administration’s rhetoric.”

Questioning Lutnick, Shaheen continued:

“Last week you said about Canada’s economic strategy, and I quote: ‘They suck.’ … How does insulting our closest ally and neighbour help the businesses in my state of New Hampshire and states all across the country who are hurting because of the loss of Canadian business and tourism?”

Lutnik was unapologetic. The Commerce Secretary said that Canada leans on the “incredible $30 trillion economy of America,” and that its “insulting” actions have not gone unnoticed.

“It is outrageous that Canada will not put U.S. spirits on the shelf,” Lutnick replied. “It is insulting and disrespectful to America.”

Of all the insults, threats and tariffs that have been traded between American and Canadian officials over the past year, few have attracted quite as much attention as the provincial alcohol ban. Following President Trump’s 25% tariff proposal at the end of 2024, Ontario Premier Doug Ford threatened to ban American alcohol from state-run liquor store shelves in his province.

The remark soon became a reality. Between February and March 2025, eight of Canada’s ten provinces issued partial or full bans on alcohol made in the United States. Some areas barred brands originating from states that voted for Donald Trump in the 2024 election; others targeted symbolically American brands like Bud Light, Kirkland and Pabst.

According to the Distilled Spirits Council of the United States, the move precipitated a 85% drop in American alcohol exports to Canada. Though several provinces have rescinded their bans, heavy hitters like Ontario — where state-owned liquor stores grossed $7.4 billion in 2023 alone — have continued to shun booze from south of their border.

Lutnick’s comment provoked an immediate reaction from Canadian officials. At a Thursday news conference in Ottawa, Prime Minister Mark Carney said that the alcohol ban could end “quickly,” but only if America concedes its ongoing trade war.

“You know what’s an irritant? A 50% tariff on steel and aluminum, 25% on automobiles, all of the tariffs on forest products. Those are more than irritants. Those are violations of our trade deal, OK?” Carney said.

“We’re looking to negotiate something mutually agreeable, and there will be adjustments there when we make progress on that.”