Impact of Canadian Booze Ban on U.S. Wine Industry The ongoing trade war between the U.S. and Canada has taken its toll on the U.S. wine industry, with Canadian liquor stores pulling American products from shelves in early 2025. Data shows just how much of a headache the booze ban has been for the U.S. as the two countries are set to begin free trade talks later this year. When Canadian liquor stores pulled American products from shelves, it delivered a bruising to the U.S. wine industry. Data shows just how much of a headache the booze ban has been as the two countries begin free trade talks later this year. The ongoing trade war between the U.S. and Canada has taken its toll on the U.S. wine industry. As we head into the Victoria Day long weekend, one of the busiest booze-buying weekends on the calendar, it's the second year where most Canadians are without access to American labels.According to trade data from the U.S. Census Bureau, wine exports from the U.S. to Canada dropped by $343 million US between 2024 and 2025, a devastating blow to the American wine industry. American alcoholic beverages have been absent from the shelves of almost all liquor stores across the country in retaliation for U.S. President Donald Trump's tariffs. The U.S. earlier this year identified the alcohol ban as one of several sticking points for upcoming trade talks.Other issues mentioned in the report include supply management, procurement policies and the Digital Services Tax. The Canada-U.S.-Mexico Agreement on trade (CUSMA), which was first negotiated during Trump's first term in office, is up for review this year. The agreement says July 1 is the date that all three North American countries need to approve a renewal or signal their intention to exit the pact