Balanced
Mar 20, 2026

TRUMP BLINDSIDED: $80 MILLION U.S. Alcohol Stockpile VANISHES Overnight — Carney Unleashes a DEVASTATING BOYCOTT BLOW

U.S. Alcohol Sits Idle as Canada’s Boycott Enters Second Year, Inflicting Billions in Losses

WASHINGTON — When President Trump launched a broad trade war against Canada last March, he expected economic pressure to force America’s northern neighbor to the negotiating table. Instead, Canada responded with a silent but devastating countermove: provincial governments simply pulled American alcohol off the shelves.

One year later, that decision has metastasized into a full-blown commercial crisis for U.S. distillers and vintners. More than $80 million worth of American beer, wine and spirits has vanished from Canadian inventory, with approximately $2 million already expired or expiring in the coming months . The broader economic toll is staggering: U.S. spirits exports to Canada plunged from $203 million in 2024 to just $60 million between March and December 2025 — a drop of nearly 70 percent .

“One year after U.S. spirits were removed from retail shelves across Canadian provinces, the damage to American distillers is unmistakable,” said Chris Swonger, president and CEO of the Distilled Spirits Council of the United States. “This policy has caused real and avoidable harm to an industry that has long championed open markets” .

‘Worse Than a Tariff’

The boycott, enacted by provincial liquor control boards in Ontario, Quebec, British Columbia and elsewhere, has proven far more damaging than a simple tariff increase. Brown-Forman Corp., the Louisville-based maker of Jack Daniel’s, reported that Canadian organic net sales plummeted more than 60 percent in the first half of fiscal year 2026 .

Chief Executive Officer Lawson Whiting called the boycott “worse than a tariff” and a “very disproportionate response” . While Canada accounts for only about 1 percent of Brown-Forman’s total sales, for smaller distillers the impact has been existential.

Minnesota’s Phillips Distilling Co. saw Canadian sales decline by roughly 70 percent — a loss equivalent to 15 percent of its branded business, according to CEO Andrew England. The company was forced to shift production of its Sour Puss liquor to a contract manufacturer in Montreal simply to remain in the market .

“It was very frustrating,” England told Bloomberg News. “If you take away 15% of our branded business, that’s a big problem. I have no idea how this is going to settle out with the U.S. and Canada, which is why we need to operate separately in Canada, and just get on with it” .

The pain extends beyond spirits. U.S. wine exports to Canada — once America’s largest wine market — have fallen 91 percent, according to an industry complaint filed with the U.S. Trade Representative . In October alone, U.S. wine exports to Canada dropped 84 percent year-over-year, while distilled spirits exports fell 56 percent .

Canadians Dig In

The Trump administration has pressed Canada to end the boycott, with U.S. Trade Representative Jamieson Greer warning that lifting provincial booze bans is a key condition for securing a successful review of the U.S.-Mexico-Canada Agreement this year .

But Canadian public opinion has moved in the opposite direction. A December poll by Nanos Research Group found that nearly three-quarters of Canadians support keeping American alcohol off store shelves, while only 20 percent favor resuming sales . Another survey showed that 71 percent of Canadians are now “less likely” to purchase U.S.-made goods than before the trade war — an increase of eight percentage points from May .

The hard line reflects deepening anger over Trump’s approach to Canada, which has included tariffs on steel and aluminum, threats to crush the Canadian automotive industry, and repeated suggestions that Canada should become America’s “51st state” through “economic force” .

Prime Minister Mark Carney has been unequivocal in response. “America is not Canada, and Canada never, ever will be part of America in any way, shape or form,” he said after taking office .

The LCBO’s Empty Shelves

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