US Wine Exports Plunge After Canada Removes American Bottles From Shelves

US wine exports dropped sharply in 2024, losing $428 million, according to new data from the US Census Bureau. The decline was driven by a major fall in exports to Canada, the largest market for American wine. Exports to Canada fell 76% after a trade dispute led Canadian provinces to remove US wines from retail shelves. Although Alberta and Saskatchewan later resumed sales, most provinces maintained restrictions throughout the year.

The trade conflict began after President Trump imposed a 25% tariff on Canadian goods and made comments suggesting he wanted Canada to become the “51st state.” In response, Canada launched a “buy local” campaign that targeted US products, including wine. This led to a steep drop in US wine imports into Canada, which fell from $34 million in May 2024 to just $961,084 in May 2025. By June 2025, imports had only slightly increased to $1 million. By November 2025, US wine exports to Canada were down 82.3%, dropping from $54 million to $9.5 million.

Overall, US wine exports fell 33.5%, from $1.3 billion in 2024 to $850 million in 2025. Carlton McCoy, CEO of Lawrence Wine Estates, said the downturn has hit entry-level wines hardest but noted that no price point has been completely immune to the current market conditions.

The American Association of Wine Economists reported that tariffs on wine in 2025 generated about $492 million in revenue for the US government. The Census Bureau also reported that total exports of “wine, beer and related products,” which includes cider, vermouth, alcohol-based ready-to-drink products and other fermented beverages, reached $1.2 billion in 2025. However, exports of “alcoholic beverages excluding wine” dropped by $215 million to a total of $2.8 billion over the same period.

Imports were also affected by the trade tensions and tariffs. Imports of wine, beer and related products fell by $1.1 billion during 2025. Imports of all alcoholic beverages declined by $3.1 billion over the same period.

Industry analysts say the loss of access to the Canadian market has forced many US wineries to look for new export destinations or focus more on domestic sales. The ongoing trade dispute has created uncertainty for producers and distributors on both sides of the border as they wait for signs of resolution or policy change.