As Trump doubles down on tariffs, Canadian distillers see a glass half full | CNN

Canada’s boycott of US booze appears to be working. Not only are US liquor exports down, but an uptick in sales is boosting the spirits of Canada’s alcohol makers.

Way back in the distant past of March 2025, at the beginning of the trade spat between Canada and the US, you might remember that Canadian liquor stores in most provinces pulled American products en masse from shelves in response to US tariffs.

US President Donald Trump certainly remembers. The boycott was back in the news last week when his administration imposed new 50% tariffs on Canadian goods. In announcing the duties, the White House said that the boycotts amounted to “unreasonable and unequal impositions and discriminations” against US alcohol producers.

Most Canadian provinces sell alcohol through government-owned retailers, similar to ABC stores in the United States. Most provincial leaders have said they won’t back down on the boycott. “There’s not a chance in hell that US alcohol is going back on the shelf in British Columbia,” said British Columbia Premier David Eby last week.

The new tariffs raise a question: How well is Canada’s booze boycott working?

The ban on US liquor sales certainly affected the American side; US liquor exports were down 3.8% in 2025, in part due to Canadian trade actions, according to the Distilled Spirits Council of the United States, an alcohol producers’ trade group.

There’s also evidence that the boycott has encouraged consumers to buy Canadian. In its annual report released last week, Quebec’s provincial liquor distributor SAQ reported a 69.4% growth in “Origine Québec” products.

Paul Goulet, the head of Quebec’s micro distilleries union, told CNN that the fallout from Trump’s trade war has contributed to “an unprecedented sense of unity across Canada.”

“In some respects, this situation may prove constructive,” Goulet said. “It has underscored the importance of further diversifying Canada’s economic partnerships with reliable and committed partners.”

Back door booze

But Leduc, of Distillerie de Montréal, said that American competition still found its way into Quebec, even if the provincial liquor distributor isn’t buying US exports.

“Several international producers have found ways to work within the current system by bottling their products in Quebec while the spirit itself is still produced in the United States,” Leduc said. When American company Proximo began bottling Kraken Spiced Rum in Quebec earlier this year, Leduc’s distillery saw a decline in rum sales.

CNN has reached out to Proximo, Kraken’s owners, for comment. The Société des alcools du Québec, the state-owned alcohol retailer in the province, told CNN in a statement that “following the ban, some American brands made the decision to move the final transformation of their product from the USA to Quebec.”

“These products are now being transformed by local companies — not just bottled — and are therefore not subject to the ban anymore,” the statement added.

Cirka says it’s still hard to get Quebec products onto shelves in other provinces. He’s been trying to get permission to sell his liquor in Ontario’s beverage retailers for 10 years to no avail.

One reform announced last week, in part due to Trump’s latest tariffs, saw nine premiers agree to allow producers to sell direct to consumers across provinces, rather than going through each province’s liquor board, which Cirka described as “an amazing first step.”