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Distilleries likely to bear brunt of U.S. ban on Canadian alcohol, experts say
A proposed U.S. ban on most Canadian alcohol imports beginning Sept. 29 could hit distilleries hardest because more than half of their products are shipped to the American market.
Canadian distilleries and spirit makers are likely to be hardest hit by a proposed broad U.S. ban on Canadian alcohol imports beginning later this month, experts say.
Craig Johnston, chief economist at Farm Credit Canada, said distilleries ship more than half of their total product to the United States. He said many distilleries that sell in the U.S. will face difficulty finding alternative markets in Canada, Europe or elsewhere.
Canadian whisky and liqueur in bottles larger than four litres will be exempt from the ban. Cal Bricker of the trade association Spirits Canada said few four-litre bottles are sold, and said shifting production south of the border would not be straightforward because legal agreements restrict distilleries from making Canadian whisky in the United States.
U.S. President Donald Trump announced that most Canadian alcohol imports, along with a lengthy list of other items, will be banned starting Sept. 29 after Canada imposed retaliatory duties earlier this week.
Andrew Oland, chief executive of Saint John, N.B.-based Moosehead Breweries, said he was not surprised but was very disappointed that alcohol had been further drawn into the latest trade escalation. Fifteen per cent of the brewery’s beverages are shipped to the United States and are already subject to steep duties after trade negotiations between the two countries broke down last month.
Moosehead is absorbing the cost of 50 per cent tariffs and is focused on shipping as much beer as possible over the next three weeks to preserve its shelf space and relationships with U.S. retailers.
The wine industry is not expecting as difficult a future as other alcohol producers, said Norman Beal, board chair of Ontario Craft Wineries, which represents more than 110 wineries in the province. About one per cent of all wine sales come from the United States, he said, while most Canadian wine is sold in Canada.
This report by The Canadian Press was first published Sept. 10, 2026.