The U.S. liquor sector is putting economic and political pressure on the Trump administration as the Canada-U.S. trade deal deadline approaches. They hope the administration might offer limited carve-outs to their industry or rethink tariffs altogether.

Ontario

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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U.S. liquor producers are calling for an end to tariffs imposed during the trade dispute with Canada, as both Republican and Democratic senators work to de-escalate tensions. The tariffs have led to a sharp decline in U.S. spirits sales in Canada, with industry groups reporting a drop of more than 66% between March and April, particularly affecting bourbon, whiskey, and wine.

Some Canadian provinces have lifted bans on U.S. liquor, but restrictions remain in others, causing economic strain for American producers. With negotiations for a new Canada-U.S. trade agreement underway, industry representatives and lawmakers are pushing for the removal of tariffs and boycotts to restore business and market access.

U.S. liquor producers caught in trade war want tariffs gone

They're popping corks and pouring shots. But it's not just a social event. Republican and Democratic senators sharing the stage trying to de-escalate the trade war with Canada. It's not just the tariffs increasing the cost. Their store owners just taking Kentucky bourbon off the shelves out of pure patriotism. The retaliation issues end up being very, very painful. Industry groups say the sale of U.S. spirits in Canada fell by more than 66% between March and April. Hardest hit? Bourbon, whiskey and wine. That's Camp Chardonnay. This is a wine, one of our kind of main exports to Canada. This California vintner hasn't sold anything to Canada for months. Let's get along. Let's get business back to where it was. I think everybody wants that. It all began when U.S. President Donald Trump started making comments like this. I say Canada should be our 51st state. There's no tariffs, no nothing. Most premiers pulled U.S. liquor off government store shelves in response to Trump's tariffs. The good news about this is that the Canadian booze is way better than the American stuff. Alberta and Saskatchewan have since lifted their bans but the others remain. Now, months later, these senators want an end to the tariffs and the boycotts. I've yet to come across a businessman or woman who comes and says, oh, I love the tariffs. It's the opposite. Just get rid of the Canadian tariffs. Just get rid of them. So this is a Virginia producer. With the deadline looming for a new Canada-U.S. trade agreement, American producers say they don't want to be forgotten. When we lose market, it's very difficult to get it back. And then these limitations on trade are just making it a little bit more difficult for us. The U.S. wine and liquor industry is facing real economic pain with lost shelf space and consumer loyalty. Pressure from Republican states like Kentucky and Tennessee could help Canada at the negotiating table. Karen Pauls, CBC News, Washington.

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U.S. liquor producers caught in trade war want tariffs gone

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