Canadian Wine Producers See Little Need for U.S. Bottles to Return

Canadian wine producers are showing little interest in seeing American alcohol return to store shelves, saying the ban has sharply boosted domestic sales and changed buying habits in ways that may last for years.

At a trade event in London on Tuesday, producers and industry officials said they expected Canada’s restrictions on U.S.-made alcohol to remain in place for at least another one to three years, and possibly longer, unless Washington removes tariffs that helped trigger the dispute. The ban began on Feb. 4, 2025, after tensions between the two countries escalated over trade measures.

Janet Dorozynski, sector lead for alcohol beverages at Canada’s trade commissioner service, called the policy “an ongoing small act of consumer resistance” and said its effect on Canadian wineries had been “quite tremendous.” She said sales in Ontario have risen by about 60% since the ban started, while Quebec has seen an increase of about 40%.

The shift has been especially significant for producers who once relied on California wines as a major competitor. Dorozynski said many Canadian consumers who used to buy U.S. bottles are now trying wines from Ontario, Quebec and British Columbia and finding comparable quality at similar prices. In her view, some shoppers are deciding they do not miss Californian wine as much as they expected.

The ban has also had a measurable impact south of the border. The Wine Institute in California has said the loss of Canadian access has wiped US$357 million from U.S. exports in just over a year, calling it the most severe single-year export disruption in the history of the U.S. wine trade.

For some Canadian wineries, the timing could not have been better. Norman Hardie, of Norman Hardie Winery in Prince Edward County, Ontario, said quality improvements across Canadian wine regions meant domestic producers were ready to absorb demand that might otherwise have gone to U.S. labels. He said he did not expect consumers to return quickly to American wine even if the ban were lifted.

Andrea Peters, senior public relations manager for Wines of Ontario, said many producers are now focusing more heavily on domestic sales because demand has surged. She said wineries that already export are still able to meet those commitments, but smaller craft producers are using the moment to expand their reach at home and through cellar-door sales.

The policy may become even more important if Canada moves ahead with broader interprovincial alcohol sales under the Free Trade and Labour Mobility in Canada Act. The federal government missed its self-imposed May 1 deadline, but provinces have signed memorandums of understanding allowing consumers to order wine, spirits and beer directly from producers in other provinces for personal use. Ontario alone accounts for about 62% of Canada’s total wine output and has signed reciprocal agreements with eight other provinces.

Doug Ford, Ontario’s premier, has said American alcohol will not return to shelves until the United States removes its tariffs. That position suggests the dispute could remain unresolved for years, with Canadian producers continuing to benefit from what several described as a lasting change in consumer behavior.

Carolyn Hurst, president and co-founder of Westcott Vineyards in Ontario, said her winery’s orders have increased sixfold since higher U.S. tariffs were announced. She said customers who switched from California Chardonnay to Ontario wines have kept buying repeat bottles and may not go back even if American products return.