One Year Later, Canadian Bans on U.S. Wine Cost American Industry $357 Million In 2025

SACRAMENTO, Calif. — One year after Canadian provinces began removing U.S. wines from store shelves in retaliation for U.S. tariffs, new full-year data shows the bans triggered a massive collapse in U.S. wine exports to Canada and left American wineries, growers and workers paying the price.

A new Wine Institute fact sheet detailing full-year 2025 trade data shows U.S. wine exports to Canada fell 78% year over year, driving a $357 million loss in export value. The disruption also reversed a long-standing trade relationship — turning a $254 million U.S. wine trade surplus in 2024 into a $90 million trade deficit in a single year.

“Behind these numbers are family businesses, growers, distributors, hospitality workers and entire communities who have no connection to this dispute — and yet are paying the price every day,” said Steve Gross, interim president and CEO of Wine Institute. “For many wineries, Canada wasn’t just another export destination. It was the market that made international growth possible.”

Canada was the top U.S. wine export market in 2024, representing 36% of all U.S. wine exports worldwide and $460 million in shipments. In 2025, Canada’s share fell to 12%, destabilizing what had long been the anchor of the U.S. wine export economy. The impact was so severe that 81% of total global U.S. wine export losses in 2025 are attributed to the Canada bans.

Canada Is Losing Too
The bans are also creating measurable economic harm in Canada. The British Columbia Liquor Distribution Branch is forecasting a CAD$77.2 million budget shortfall for fiscal year 2025-26 — a 13.2% decrease in net income compared with the prior year — citing the removal of U.S.-made alcohol products as a contributing factor.

Canadian importers, sales representatives and hospitality workers have lost jobs and income, while consumers have lost access to familiar American brands.

Wine Institute Calls for an Immediate Resolution
U.S. wine is produced in all 50 states and generates more than $323 billion in total economic activity, supporting rural communities and local economies nationwide.

With damage mounting and the bans failing to advance broader trade relations, Wine Institute is calling on leaders on both sides of the border to end this unprecedented barrier and restore normal trade.

“Our wineries urgently need a return to open trade with Canada. Their livelihoods depend on it,” Gross said. “Wineries plan and invest years ahead — you can’t replace a market like this overnight. One year is long enough.”

Download the full fact sheet, including trade data and sources here.