The U.S. May Investigate Canada’s Ban on American Booze
Since March 2025, every Canadian province except for Alberta and Saskatchewan has banned the sale of American booze. This move was made in retaliation against the tariffs that President Trump imposed on Canadian goods at the time, but it’s one that has had a major negative impact upon many American producers. Now, a New York congresswoman has proposed an investigation into these bans, calling it the CANADA Act.
That acronym stands for “Combating Attacks on our National Alcoholic Drinks by Allies.” The investigation was put forward by Republican congresswoman Claudia Tenney of the 24th district of New York State, which includes the Fingers Lakes region that is home to many wineries and distilleries. According to a press release issued by Tenney’s office, she is introducing legislation for the U.S. Trade Representative to initiate a “Section 301 investigation into the restrictions on the importation and distribution of American alcoholic beverages through provincial liquor boards.”
“Canadian provinces cannot be allowed to hold American wineries, breweries, and distilleries hostage and attempt to ransom them,” she said in a statement.
Of course, these Canadian bans on American liquor do not exist in a vaccum. As mentioned before, they are a direct response to the Trump administration imposing 25 percent tariffs in March 2025 on most Canadian imports, including whisky. While the Supreme Court ruled that the president did not actually have the authority to impose many of these levies under the International Emergency Economic Powers Act (IEEPA) in February of this year, many tariffs still remain on things like car parts, steel, and aluminum.
Tenney’s proposal is finding support among local producers and alcohol trade organizations, which cite the dismal export figures that have plagued the industry since the ban went into effect. And this has affected both craft and large-scale producers alike. For example, Brown-Forman, the parent company of Jack Daniel’s, reported a drop in Canadian sales by more than 60 percent.
“For too long, America’s craft distillers have been caught in the middle of a trade dispute that has nothing to do with them,” said American Craft Spirits Association CEO, Emily Pennington, in a statement. “We appreciate Congresswoman Tenney’s leadership in bringing renewed attention to the discriminatory treatment of U.S. craft spirits in Canada and hope this legislation encourages serious negotiations that restore fair market access for American producers.”
We also reached out to the Distilled Spirits Council, and received the following statement from president and CEO Chris Swonger: “For nearly a year and a half, American spirits have been pulled from store shelves across much of Canada as collateral damage in a broader trade dispute unrelated to our sector. We appreciate Rep. Tenney’s efforts to highlight the impact these restrictions have had on U.S. distillers and encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for U.S. spirits without further escalating trade tensions.”
It remains to be seen if this legislation will advance and if it will have any effect, but we will report on any developments as they occur.
Authors
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Jonah Flicker
