President Trump is reportedly urging Canada to lift its boycott on American alcohol, especially as recent data indicates that U.S. distilleries are experiencing diminished sales in Canada.
Provinces like Ontario, Quebec, and British Columbia have stopped selling U.S. wines and spirits in government-run liquor stores since Trump initiated a trade war last year. This decision has cost American liquor manufacturers millions, according to Bloomberg News.
U.S. Trade Representative Jamieson Greer recently warned that the review of the U.S.-Mexico-Canada Agreement, which includes many exempt products, hinges on states ending their prohibitions on alcohol sales.
Brown-Forman, known for Jack Daniels, reported to Bloomberg that its Canadian net sales dropped over 60% in the first half of fiscal 2026. CEO Lawson Whiting described the boycott as “worse than tariffs.”
Smaller producers are facing even bigger challenges. Phillips Distillery from Minnesota mentioned that its Canadian sales have plummeted by approximately 70%. This situation has pushed the company to move production of its Sour Pass brand to a contract manufacturer in Montreal.
CEO Andrew England expressed frustration over the scenario, noting that this loss accounts for about 15% of the company’s branded business. “If you take away 15% of our brand business, that’s a big problem,” he said. England also mentioned uncertainty about the resolution of this conflict, which has forced the company to adapt its operations in Canada.
Meanwhile, Jim Beam had to temporarily pause production at its U.S. distillery due to low demand, resulting in an excess of unsold whiskey, but it didn’t specifically cite the Canadian boycott as a reason.
The impact of the boycott is evident in national trade statistics. U.S. wine exports to Canada in October were down 84% year-over-year, and spirits exports fell by 56%, as reported by the U.S. Department of Agriculture.
Canada was previously the largest market for U.S. wine, but bilateral trade has nosedived by 91%, according to a complaint from the American wine industry.
Most Canadians still support the boycott, viewing it as a response to Trump’s aggressive trade strategies. A poll by Nanos Research Group revealed that nearly three-quarters of Canadians favor keeping U.S. alcohol off their shelves, with only 20% in favor of resuming sales.
This firm stance reflects rising frustration over Trump’s trade policies, including tariffs on steel and aluminum, as well as the possibility of imposing import taxes on the Canadian auto sector.
Trump’s controversial remarks about potentially making Canada the 51st state have also stirred discontent throughout the year, although this position seems softened now.
The White House justifies the president’s trade tactics, noting that tariffs have cost the U.S. Treasury around $236 billion. Press Secretary Khush Desai claimed that the tariffs have expanded market access for American products in a vast economy.
A public opinion poll indicates that even in provinces heavily impacted by Trump’s tariffs, about 71% of Canadians are now less inclined to buy U.S. products than they were prior to the trade war, which suggests that support for the boycott is growing.
Alcohol sales in Canada are largely controlled by provincial monopolies, enabling quick removal of U.S. products. Provinces like Ontario, Quebec, British Columbia, Nova Scotia, Manitoba, Newfoundland and Labrador, and Prince Edward Island follow this system, while Alberta and Saskatchewan have continued to sell U.S. alcohol due to their privatized retail systems.
The newspaper has reached out to the Canadian government, Brown-Forman Distillery, and Phillips Distillery for their comments.
