Claudia Tenney Introduces Bill Targeting Canada’s Curbs on American Alcohol

Republican Representative Claudia Tenney of New York has introduced a bill that could open a new front in the trade dispute between the United States and Canada over alcoholic beverages, by directing the Office of the United States Trade Representative to investigate Canadian provincial restrictions on American beer, wine and spirits.

The proposal, called the CANADA Act, short for “Combating Attacks on our National Alcoholic Drinks by Allies,” would not impose penalties on Canada on its own. Instead, it would require the U.S. trade office to begin a Section 301 investigation, a formal process used to determine whether foreign policies are unfair, discriminatory or harmful to American commerce. If such an investigation found that Canada’s provincial measures violated U.S. trade interests, it could give the president grounds to impose retaliatory tariffs or other restrictions.

The bill arrives as tensions remain high over access to the Canadian alcohol market. Since March 2025, every Canadian province except Alberta and Saskatchewan has removed American alcohol from government-controlled liquor stores, according to The Drinks Business. In those provinces, state liquor boards stopped renewing listings for U.S. brands while retailers promoted domestic alternatives. Alberta and Saskatchewan were exceptions because both rely more heavily on private retail systems rather than provincial retail monopolies, allowing American products to remain available.

The Canadian restrictions were adopted after President Donald Trump imposed 25% tariffs on Canadian imports within weeks of beginning his second term in January last year. That move triggered a broader cycle of retaliation between Washington and Canadian provincial governments, with alcohol becoming one of the most visible targets.

Tenney represents a district that includes New York’s Finger Lakes region, where wineries and distilleries depend in part on export markets and have lost access to Canadian buyers during the dispute. Her office has framed the legislation as a response to damage suffered by producers that were not involved in the original tariff fight but have borne its effects.

Section 301 investigations can carry major consequences even before any final action is taken. The process itself raises pressure on trading partners to negotiate and can create uncertainty for exporters, importers and distributors while the review is underway. If the U.S. trade office were to conclude that Canadian provincial restrictions amount to unfair trade practices, the White House could decide to answer with new tariffs or other trade measures.

That possibility matters across the beverage industry because Canada is one of the most important foreign markets for American alcohol producers. Provincial liquor boards are among the world’s largest buyers of alcoholic beverages, and shelf access in those systems is critical for U.S. wineries, breweries and distillers. A longer dispute could extend losses for producers while also affecting prices, product availability and distribution channels tied to government-run liquor stores.

The financial impact is already visible in some parts of the sector. Brown-Forman, the maker of Jack Daniel’s, said its sales in Canada fell by 60% last year after the provincial boycotts took effect. Industry groups have backed Tenney’s bill, arguing that American drinks producers have become collateral damage in a dispute driven by broader trade policy.

Emily Pennington, chief executive of the American Craft Spirits Association, said craft distillers had been caught in the middle of a conflict unrelated to their businesses. Chris Swonger, president and chief executive of the Distilled Spirits Council of the United States, said American spirits had been pulled from store shelves across much of Canada for nearly a year and a half because of a wider trade fight outside the sector.

The legislation still faces significant hurdles. It must pass both chambers of Congress before it can become law, and there is no guarantee it will advance. Even if enacted, it would only compel an investigation, not immediate retaliation. Any eventual trade response would depend on the findings of U.S. investigators and decisions made by the White House afterward.

The dispute also carries legal and political complications. Under the United States-Mexico-Canada Agreement, alcohol generally moves tariff-free across North America. At the same time, The Drinks Business reported that the U.S. Supreme Court has previously ruled that Trump exceeded his authority in imposing the original 25% tariffs, though some duties remain in place on products including aluminum and certain automotive goods.

For now, Tenney’s bill adds pressure to an already strained relationship between two closely linked drinks markets. It also signals that lawmakers from producing regions are willing to push for stronger federal action if negotiations fail to restore access for American wine, beer and spirits in much of Canada.