Canadian provincial liquor boards have halted orders for U.S.-made spirits, wine and beer, triggering a steep fall in cross-border alcohol trade and leaving American producers scrambling for alternative markets. Data compiled by the Distilled Spirits Council show U.S. distilled-spirits exports to Canada fell 62% year-on-year to about US$43.4 million in the first half of 2025, while wine shipments dropped 67%. Ontario’s government-run Liquor Control Board, which rang up roughly US$700 million in American alcohol sales last year, reports purchases have “dwindled to zero.” The collapse follows Canada’s retaliatory response to former President Donald Trump’s tariffs on Canadian goods, compounded by consumer boycotts that have emptied shelves of U.S. labels. “The absence of U.S. wine from Canadian stores is not just a market disruption, it’s a breakdown in a trusted relationship built over decades,” Wine Institute Chief Executive Robert Koch said. With Canada historically ranking among their largest foreign buyers, U.S. distilleries and wineries warn that prolonged restrictions threaten jobs in farming, bottling and logistics, and could accelerate consolidation in an industry already facing softer domestic demand.