U.S. Wine Exports to Canada Plunge 78% After Provincial Bans

A year after Canadian provinces began removing U.S. wines from store shelves in response to American tariffs, new data confirms the move has caused the steepest single-year disruption in modern U.S. wine trade. According to a fact sheet released by the Wine Institute, U.S. wine exports to Canada dropped 78% in 2025 compared to the previous year, resulting in a $357 million loss in export value for American producers.

The trade relationship between the two countries shifted dramatically. In 2024, the United States held a $254 million wine trade surplus with Canada. By the end of 2025, that surplus had turned into a $90 million deficit. The Wine Institute, which represents American wineries, said the impact has been felt across the industry, affecting family businesses, growers, distributors, hospitality workers and entire communities.

Steve Gross, interim president and CEO of the Wine Institute, said many wineries depended on Canada as their primary international market. “For many wineries, Canada wasn’t just another export destination. It was the market that made international growth possible,” Gross said.

Canada was the largest export market for U.S. wine in 2024, accounting for 36% of all American wine exports and $460 million in shipments. In 2025, that share fell sharply to 12%, destabilizing what had long been a cornerstone of U.S. wine exports. The Wine Institute reports that 81% of total global losses in U.S. wine exports last year are attributed to the Canadian bans.

The effects have not been limited to American businesses. In Canada, economic harm is also being reported. The British Columbia Liquor Distribution Branch forecasts a CAD$77.2 million budget shortfall for fiscal year 2025-26, a 13.2% decrease in net income compared with the previous year. The agency cited the removal of U.S.-made alcohol products as a contributing factor to this decline.

Canadian importers and sales representatives have lost jobs and income as a result of the bans. Hospitality workers have also been affected, and consumers have lost access to familiar American brands on store shelves.

The Wine Institute is urging leaders from both countries to resolve the dispute and restore normal trade relations. The organization points out that U.S. wine is produced in all 50 states and generates more than $323 billion in total economic activity nationwide, supporting rural communities and local economies.

Gross emphasized that wineries plan and invest years ahead and cannot easily replace such a significant market overnight. “Our wineries urgently need a return to open trade with Canada. Their livelihoods depend on it,” he said. “One year is long enough.”