Tariffs and retaliatory measures significantly hurt Canada’s wine industry by increasing the cost of U.S. grape must and juice needed by many winemakers, while also indirectly harming wineries through higher costs for imported packaging and equipment. On the other hand, provincial bans on U.S. wine improved sales for domestic Canadian wines. However, should this increased demand continue, wineries may need to enhance their operations.

Wine production costs have increased for wineries that purchase grape must (crushed grapes) from the U.S.  Tariffs on steel and aluminum from the U.S. have increased the cost of barrels, equipment and cans.

However, it’s not all doom and gloom for the Canadian wine industry. There have been increased sales of domestic wine due to the removal of American wines from liquor and wine store shelves in most provinces.

Statistics Canada announced that in April 2025, Canada imported only 2.9 million dollars of American wine  a 94% decrease from the year previous. Imports from other wine-producing regions such as New Zealand and Australia increased by 31% and 28% respectively, while shipments from France and Italy rose by 13.6% and 7.6% respectively.

Wineries in Southwestern Ontario, the B.C. Lower Mainland, and Kelowna have experienced increased sales. For example, despite total wholesale wine sales falling nearly 5% year-over-year, B.C.’s share climbed from 47% to over 52%. For the first time, B.C. wines represent more than half of all wholesale wine sales in that province.

However, as stated previously, I don’t believe there are any real winners in a trade war.

Sláinte mhaith