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UPDATED: Wine on the frontline in nasty fight over Trump tariffs. Here’s how you can help.

By Rick VanSickle

Reaction to U.S. president Donald Trump’s misguided trade war with Canada has been swift and decisive with American wine and booze squarely in the crosshairs.

Also in this Canadian Wine Report: How consumers can help during this trade war and how the industry can help consumers navigate their way around 100% Canadian wines.

Canadian wine

Ontario Premier Doug Ford was the first to announce the removal of U.S. alcohol products — wine, spirits, cider, seltzers, and beer — from LCBO shelves by Tuesday. Most other provinces announced similar moves after Trump launched a trade war by slapping a 25% tariff on Canadian goods imported into the U.S.

In a statement Sunday, the LCBO said it has been directed by the Ontario government to stop “indefinitely” all sales of U.S. alcohol products in its stores and online and to stop wholesale sales of U.S. products to restaurants, bars, grocery, and other retailers, no later than Tuesday

The LCBO said the measure is “part of Ontario’s response strategy to the imposed U.S. tariffs on Canadian goods.” The LCBO said it is the “importer of record” for all U.S. alcohol products into the province, with annual sales of up to $965 million. It lists more than 3,600 products from 35 U.S. states

UPDATE: Last Monday afternoon, Premier Ford announced the tariffs have been paused by the U.S. president and therefore the ban on U.S. wines in Ontario has been halted for a month. Wines in Niagara has chosen to leave the original story as is because it has information that is still relevant. Here is the full statement from Ford:

“We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail. Thank you to the countless workers, union leaders, businesses and everyday proud Canadians who rallied together to make this happen.

“With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures. If President Trump proceeds with tariffs, we won’t hesitate to remove American products off LCBO shelves or ban American companies from provincial procurement.

“Make no mistake, Canada and Ontario continue to stare down the threat of tariffs. Whether it’s tomorrow, in a month or a year from now when we’re renegotiating the United States-Mexico-Canada Agreement, President Trump will continue to use the threat of tariffs to get what he wants. We’re already feeling the impact. So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already under way put at risk.

“Canada and the U.S. need to remain united and focused on the real trade war we’re fighting, with China. If we want to win, we need to fight together — not each other.

On Saturday, B.C. Premier David Eby said he has directed the B.C. Liquor Distribution Branch to stop purchasing American liquor immediately from Republican-led “red states” and removed a few top-selling brands from public liquor store shelves.

He also directed the B.C. government and crown corporations on Saturday to buy Canadian goods and services over American ones.

The B.C. ban is quite modest compared to the rest of Canada. The only products immediately impacted are Jack Daniels Whiskey, Bacardi Rum, Titos Vodka, Jim Beam Whiskey, and Bulleit Bourbon.

Nova Scotia Premier Tim Houston said on Saturday that his government would direct the Nova Scotia Liquor Corp. to remove all U.S. alcohol from store shelves effective this Tuesday. That totals more than 400 products, including beer, wine, spirits and coolers.

“We will look for opportunities to cancel existing contracts and will maintain the option to reject bids outright because of President Trump’s unlawful tariffs,” Houston said.

On Sunday, Newfoundland and Labrador Premier Andrew Furey said in a statement that U.S. products will be pulled from liquor stores across the province by Tuesday.

“I ask people here and around the world to buy responsibly and support us in standing up to the American bully next door,” Furey said.

An LCBO California section three days before it become it was to become empty on Tuesday.

On Sunday, the Quebec government announced that it asked the province’s liquor board, the Société des alcools du Québec (SAQ), to remove all American products from its shelves starting Tuesday.

It also instructed the SAQ to halt the supply of American alcoholic beverages to agencies, grocery stores, restaurants and bars. The changes may take a few days to be fully implemented, according to the government.

The California Wine Institute, that state’s powerful industry association, issued a response to the Canadian bans, urging a resolution to the U.S.-Canada dispute.

“Canada is the single most important export market for U.S. wines with retail sales in excess of $1.1 billion annually,” said Robert P. Koch, CEO of the Wine Institute. “Wine is one of the U.S.’s most highly value-added agricultural exports, so any loss of access to the Canadian market will damage the entire U.S. wine sector. Our wineries have spent decades building market share and brand loyalty across Canada. These actions put all of this at risk. In addition, all of beverage alcohol is already facing unprecedented challenges in the marketplace so these tariffs and potential product removals come at a time when their impact will be particularly hard to absorb. We urge both governments to work together to resolve this dispute as soon as possible to minimize the economic harm.”

The U.S. wine industry has long supported the position that wine, as a unique agricultural product, should not be targeted in trade disputes unrelated to wine. The Wine Institute strongly advocates for the removal of wine from all trade retaliation lists regardless of the market. Retaliatory tariffs invariably harm U.S. wine producers and impede the growth of the wine sector, the institute said.

Canadian alcohol producers are viewing the removal on U.S. products from shelves as an opportunity to increase market share and make more consumers aware of the products made in their own country.

Many of them say the move will deliver a boost to homegrown businesses while adding ammunition to a federal plan aimed at getting the U.S. to back down from tariffs.

“This is an unnecessary attack on Canada and our way of life and economy from our friends, neighbours and family in the U.S., Paul Speck (above), president of Niagara’s Henry of Pelham Family Estate Winery, told Wines in Niagara. “Canadians need to band together from coast to coast to coast and support each other through purchasing Canadian made products of all kinds. In wine, it’s easy. Go to the VQA section or look for the words and logo on the bottle and you are assured of wine grown and made in Ontario.”

Bromlyn Bethune, president of Toronto-based Steam Whistle Brewing, told the CBC that “no doubt, it’s a big opportunity … to showcase true nationalism, and it’s supporting Canadian jobs, local manufacturing.”

Ford said in a statement that “there’s never been a better time to choose an amazing Ontario-made or Canadian-made product.”

Michelle Wasylyshen, president of Ontario Craft Wineries, told the CBC that she saw Ford’s move as a particularly helpful way to ensure Canada’s retaliatory measures pack a punch. Canada does not export any significant amount of wine into the U.S., but Canada is the largest market for American wine, she said. “Mr. Trump can’t hurt the Canadian wine industry in the same way that Canada can hurt the U.S. wine industry,” she said. “From a trade perspective, there really is an imbalance and it hurts them more than it hurts us when we remove their products.”

Wasylyshen said she hopes pulling U.S. drinks from shelves in conjunction with tariffs this time will prompt Canadians to support homegrown businesses. “It’s a stressful time for many companies, I understand that, but for us, it’s definitely an opportunity and we’re looking forward to taking advantage of it,” she said.

A briefing note from Wine Growers of Canada, a national wine association, pointed to many bullet points.

U.S. Wine Exports to Canada (1988-2023):

• Total value: $567.3 million
• Total volume: 52.3 million litres
• Bottled wine: 87.2% of volume, 96.4% of value
• Bulk wine: 12.8% of volume, 3.6% of value

Top U.S. Wine Imports to Canada (2023):

• Major U.S. wine manufacturers in Canada include E&J Gallo, Constellation Brands, and Robert Mondavi, among others, contributing significantly to the Canadian market.

Wine Imports to Canada by Country (2023):

• The U.S. is Canada’s third-largest wine value-importing country, following Italy and France, representing 9% of total wine value imports.

Recommendations

• Monitor U.S. tariff decision: Stay informed about U.S. import tariff discussions and maintain engagement with both federal government officials and the U.S. wine industry.
• Prepare for Retaliation: Coordinate with industry stakeholders to develop effective responses to potential U.S. tariffs, including seeking remission orders or exemptions for key wine products.

Talking Points

• U.S. tariffs on Canadian exports could have a devastating impact on all businesses across the Canadian economy, undermining the world’s largest bilateral trade relationship, built on decades of trust and mutual prosperity.
• While Canada is not a major wine exporter, U.S. tariffs would result in job losses, increased costs, reduced household incomes, and negative effects on wine growers, consumers, and the entire value chain.
• Tariffs and retaliatory measures would affect the wine industry directly and indirectly, including through vital inputs (e.g., packaging, additives) sourced from the U.S.
• The threat of U.S. tariffs highlights the need to expedite the removal of interprovincial trade barriers, including the prohibition on direct-to-consumer (DTC) wine delivery. Removing DTC barriers would create new market opportunities for Canadian wineries and benefit the Canadian economy.

Quick Stats

• The Canadian wine sector generates $1.5 billion in business revenue, contributing nearly $12 billion in annual economic impact, including $2 billion from wine tourism.
• California alone has eight wineries producing more wine than all of Canada combined.
• The U.S. is Canada’s third-largest bottled wine importer by volume, after Italy and France, accounting for 17.3% of total bottled wine imports.
• Since 1988, the value of the U.S. trade surplus with Canada has grown from $12.6 million to $538.1 million in 2023, a growth rate of 4,160%.

What consumers can do
during this time of crisis

Wines in Niagara reached out to several key Niagara wineries to get their thoughts on what consumers can do to during this dispute with the U.S. Here are some of their thoughts.

Carolyn Westcott, co-owner of Niagara’s Westcott Vineyards
and chair of Ontario Craft Wineries

• Pick VQA wines when you are in a restaurant, LCBO, grocery or convenience store.
• If you don’t see VQA wines on a restaurant list, or the one token “Ontario” wine they have is not great, ask to speak to the manager. (Telling your server is no guarantee that the message will be received by the person making the decisions).
• Visit an Ontario winery.
• Buy from them online, if possible.
• Sign up for a wine club. There are so many different options now and at different price points. And most have great additional benefits.
• Is there a wedding or other big life event/party in the near future? Impress your guests. Buy VQA direct from winery. Don’t let the caterers talk you out of great VQA wine or limit your choices to what they make the most money on.
• Tell your friends when you find a great VQA wine.
• Share a great review on the winery website or post on your own account with a shout out and tag.
• There are a number of Made in Canada social media community pages that are very busy now.  Jump on and share your great experience with your favourite VQA wine.

Harald Thiel, owner of Niagara’s Hidden Bench Estate Winery

• Consumers should ask for and drink local when dining out. It would be great if Ontario restaurants had better Ontario wines for consumers to choose from.
• Travel to and experience a Canadian wine region as part of your staycation this year.
• Purchase a different Ontario VQA wine every week while the tariffs are on. Pair it with a local Canadian cheese.

Brian Schmidt, winemaker at Vineland Estate Winery

• For over 30 years ,the letters VQA found on a bottle of wine has been the proof that the wine inside that bottle you are about to enjoy is 100% Canadian.
At no point in the long history of Canadian Wine have the letters VQA meant as much as they do in this moment.
• The most effective way to confront the trade war that has been started by our neighbour is to seek and buy Canadian made products.
• We are asking you to support VQA wine growers and winemakers when choosing the wines you buy.

Alison Oppenlaender, co-owner of Niagara’s Liebling Wines

• During this uncertain and scary time, it’s encouraging to see the country unite in their support to seek Canadian-made products.
For consumers that are new to Ontario wine, please don’t be intimidated to try a new to you wine or brand, simply look for the VQA words or logo on bottles.
• If the price tag of a local Ontario wine is a bit over budget, go halfsies with a friend – use it as an excuse to hang out and try something new.
• Social support is also greatly appreciated, send your fave winery a DM or email, or share their profile so others can be introduced to something new. 

Bill Redelmeier, owner of Niagara’s Southbrook Vineyard

• Find a writer who focuses on local wine.
• If you aren’t experienced in Ontario wine, come and visit. It is the best way to experience the passion.
• Ask at your favourite LCBO if they could order your favourites.
• Ontario makes great quality wines that can satisfy any palate.
• Supporting local wines supports the country.

A few final thoughts for the Ontario wine industry
to ponder in the face of this trade war

• Call on Canada’s main wine industry associations — Wine Country Ontario, Wine Marketing Association of Ontario, Wines Growers of Canada, more localized associations like Wineries of Niagara-on-the-Lake, etc. — get on the same wavelength in promoting 100% Ontario (or B.C., Nova Scotia, Quebec) wines in any way they can. Engage consumers with useful information on how to get your wines, what terms like VQA mean, what supporting 100% Canadian wines means to the economy, and why Canadian wines can compete on the world stage with other regions, particularly wines from the west coast of the U.S.

• Industry associations, like those mentioned above, need to abandon regular content on social media feeds and devote 100% of your efforts on VQA wines — how to get them, what they are, and how they lift the economy locally and nationally. Reach out to media, send more samples out, fight for coverage in mainstream media. Engage consumers, talk to them.

• It’s not the time to talk about International Domestic Blends and the confusion they cause. Consumers are not supporting the Canadian wine industry by purchasing wines that are 75% from somewhere else. Leave them out of the conversation for now.

• Promote those who promote you. Point consumers to websites and publications that are focused on Canadian wines. It doesn’t matter who you promote, as long as you recognize the importance of these entities that help move the needle for 100% Canadian wines.

• Industry associations need to work with the LCBO in Ontario. Assert yourself. Shelves are going to look very empty come Tuesday and consumers will be looking for alternatives such as Canadian wines. Arrange tastings, explain clearly about what your wines are all about and why they are so good, and let consumers know how Ontario wines are situated in located places in Vintages stores.

• Promote new wines that are coming to Vintages in the bi-monthly releases. These are generally higher end wines that get shoved into weird places at different LCBO stores. They could use a little love from industry associations for consumers to find them and understand better what is different about them then the general list VQA wines.

• Wineries need to muster the full force of your marketing abilities to get your message out that you are available for tastings, how to get them online, and what you are all about.

• Begin a concerted campaign that all wineries can get on board with. Whatever it is, do it soon and start banging that drum as loud as you can.

• Lift your neighbour. If someone visits you and buys your wine, point to the winery next door and the one down the road. A rising tide lifts all boats.

• Be respectful to Americans, they are our friends, allies and neighbours. This is not a fight with them, it’s a fight against one man with misguided intentions who happens to be the dude in charge right now. Sadly. I love wines from many regions in the U.S. and don’t want to live without that choice forever. I will welcome them back with open arms when and if Trump comes to his senses.

• Break down barriers standing between provinces that stifles the free flow of wine across this great country of ours. Let’s get past this tiring protectionism and start acting like the Canadians we are.