Economy

Economic Commentary

Economic Calendar

Global Economies

Global Economic Calendar

Canada To End U.S. Alcohol Ban As Part Of Trade Deal

Multiple media reports say that Canadian Prime Minister Mark Carney has asked provincial premiers to remove the current ban on U.S. alcohol imports.

The request from Carney comes as the U.S. and Canada move closer to a trade deal that will avert 50% American tariffs on imports of Canadian products such as hockey sticks and wine.

The media reports quote several Canadian premiers as saying that Carney asked them personally to put U.S. booze back on store shelves.

Canada’s provinces banned U.S. alcohol in retaliation for President Donald Trump’s first round of tariffs imposed in April 2025.

The booze ban had proved to be a major trade irritant for the U.S. and was top on the list of concessions American negotiators sought in discussions with Canadian officials.

However, even if U.S. alcohol is returned to Canadian liquor stores, there’s no guarantee it will be purchased by consumers.

A recent survey found that a majority of Canadians said they won’t purchase U.S. wine, spirits, or beer even if it returns to stores.

Several Canadian premiers said that they are cautiously optimistic that a new trade deal with the U.S. can be reached, though they emphasized that a deal is not yet done.

Canada’s provincial bans on U.S. alcohol are estimated to have cost American wine and beer exporters $582 million U.S. in lost sales in 2025, according to industry data.