Since early 2025, the restrictions on the sales of alcoholic products produced in the United States (US) have caused large changes in the dynamic of the Canadian wine market. This Market Bulletin will summarise the latest restrictions on the sales of US products and what impact this has had on sales of Australian wine.
The latest wine sales data across the four largest Canadian provinces is now available to Australian wine grape levy-payers and exporters, through a newly released report.
The latest restrictions by province
On 1 February 2025, the US announced 25% tariffs on Canadian goods, which came into effect on 4 March 2025. In response, Canada announced a 25% tariff on wine and other alcoholic beverages produced in the US. Provincial leaders went further and banned the importation of alcoholic beverages from the US. As mentioned in a previous Market Bulletin, beverage alcohol sales in Canada are controlled by provincial governments, with all 13 provinces operating government-run systems except for Alberta which was privatised in 1993. In government-run liquor stores and convenience outlets, these products were removed from shelves, significantly limiting consumer access outside of online and depot channels. Moreover, strict regulations in Ontario restricted access of US products from leaving Liquor Control Board of Ontario (LCBO) warehouses, making it difficult for agents to sell them to bars and restaurants. Retailers in Alberta were allowed to continue to sell through their existing stocks but not replenish them. Private retailers in British Columbia proceeded in a similar fashion, where they were allowed to continue to sell through existing stock which was available to purchase from LDB wholesale distribution channels, but not replenish them from red states.
However, since June 2025, Alberta has announced that they will resume accepting US alcohol products. Quebec has also allowed its liquor board to put select US products back on the shelf from February 2026 that are reaching their expiration date[8].
Canadians drinking more Canadian and Australian wine
The various bans left Canadian businesses looking to fill the gap left by US wines, opening the opportunity domestically as well as to other countries such as Australia. According to Trade Data Monitor, Canada imported 66 million litres of wine from the US in the year ending February 2025 (17 per cent share), ranking the U.S second by volume, behind Italy.
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