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By Hugh Cameron
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A trade group representing the American liquor industry has welcomed the Canadian government's decision to remove retaliatory tariffs on products covered by the United States-Mexico-Canada Agreement (USMCA), but is pleading for the removal of provincial moratoriums on the sale of U.S. alcohol.
"This is a very positive sign," Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said on Monday. "But until all provinces put American spirits back on their shelves, it won't have much of an impact."
Newsweek has contacted some of the provincial governments where these boycotts remain in place via email for further comment.
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Why It Matters
In March, the Canadian government unveiled a tranche of duties on American goods in response to President Donald Trump's tariffs on the country. In addition, several provinces announced they would be pulling U.S. alcoholic products off shelves, and these policies remain in place in Ontario, Quebec and other territories. As the Distilled Spirits Council warned, and data has revealed, this boycott has severely impacted sales of U.S. alcohol across Canada.
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What To Know
On Friday, Prime Minister Mark Carney announced that Canada would be lifting tariffs on U.S. goods covered by the 2020 USMCA. This followed a phone call between the Canadian premier and Trump, which the latter described as "very good."
Among the lengthy list of goods that will be spared the duties as of September 1 are imports of American wine, liquor and beer. However, a number of provinces, where the local government is the importer of record, have maintained their own bans on these sales.
"In response to U.S. tariffs on Canadian goods, U.S. products are no longer available for purchase online or in-store until further notice," reads a notice on the Liquor Control Board of Ontario website, which also directs customers toward Canadian-sourced alternatives.
"The unfortunate decision to remove American spirits from Canadian retail shelves is not only harming U.S. distillers, but it's also needlessly reducing revenues for the provinces, and placing unnecessary burdens on Canadian consumers and hospitality businesses," the president of the Distilled Spirits Council said on Monday.
These measures, as well as the ongoing consumer-led boycott of U.S. products in Canada, have taken a heavy toll on the industry.
According to a July press release from the Distilled Spirits Council and Spirits Canada, the adjacent trade body for the country's liquor industry, sales of American spirits in Canada declined 66.3 percent between early March and the end of April compared to the same period of 2024.
For the first six months of 2025, the group estimated that total U.S. exports had dropped around 62 percent year-over-year. These figures were first reported by the Wall Street Journal.
What People Are Saying
Distilled Spirits Council president and CEO Chris Swonger said: "American and Canadian spirits are deeply rooted in heritage and are meant to bring people together, not divide us. We are hopeful this is a sign that our special spirits products will soon be back on shelves for Canadians to enjoy and raise a glass to toasts not tariffs."
Canadian Prime Minister Mark Carney, during a speech on Friday, said: "Canada currently has the best trade deal with the United States. And while it's different from what we had before, it is still better than that of any other country.
"So, as we work to address outstanding trade issues with the United States, it's important, it's vital, we do everything we can to preserve this unique advantage for Canadian workers, Canadian businesses, and doing so will require both building on a soon-to-be revised [USMCA], our free trade agreement with the U.S. and Mexico, as well as developing a new form of trade and security partnership with the United States."
U.S. President Donald Trump, speaking in the Oval Office on Friday, said: "[Carney is] removing his retaliatory tariffs, which I thought was nice. And we're going to have another call soon. We had a very good call. They're getting closer, and towards—I like them."
"We want to be very good to Canada," he added. "I like Carney a lot. I think he's a good person. And we had a very good talk yesterday. So I think it'll be good."
What Happens Next?
Trump's Commerce Secretary Howard Lutnick said recently he believes Trump is "absolutely going to renegotiate" the USMCA, but that this change was not an immediate priority.
Meanwhile, Canadian provinces where bans are in place have given no indication that they plan to begin restocking U.S. spirits.
The Société des alcools du Québec, the province's state-owned liquor board, told Newsweek that the measure will remain in place until the regional government decides otherwise. A representative for Ontario Premier Doug Ford similarly told CP24 that the boycott would continue "until further notice."
Update 8/27/25, 9:52 a.m. ET: This article was updated with data from the Distilled Spirits Council of the U.S.
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