U.S. Wine Exports To Canada Plunge 93%

U.S. wine exports to Canada fell 93% in April, the biggest decline in more than 20 years, as Canadian provinces pull American alcohol from their store shelves in response to tariffs.

The April decline marked the largest drop in wine exports from the U.S. to Canada since 2002, according to data from the U.S. Census Bureau.

The steep plunge is a major blow to one of the most important foreign markets for American wine producers and bad news for alcohol companies such as Constellation Brands (STZ) and LVMH Moet Hennessy (EPA:MC).

The American Association of Wine Economists issued a statement saying, “wine is in a crisis,” with too much being produced in California and other areas of the U.S. while demand falls.

The sharp drop came after several Canadian provinces imposed bans on American wine and spirits in March, following America’s decision to raise tariffs by 25% on Canadian goods.

The response included sweeping removals of U.S. alcohol from wine and liquor stores.

In Ontario—Canada’s most populous province and home to nearly 40% of the country’s population—the Liquor Control Board removed all U.S. wine and spirits from its 677 outlets.

The board typically imports about $1 billion U.S. worth of American alcohol annually.

The current situation is particularly bad as Canada was the largest international buyer of U.S. wine in 2024, accounting for roughly one-third of total U.S. wine exports.

Other major U.S. wine markets also showed weakness in April. Exports to China fell 30.5% year-over-year to $4.54 million U.S.

Analysts say that ongoing tariff uncertainty continues to weigh on the global wine industry. Many U.S. buyers are holding back from purchasing French and Australian wine due to import tariffs.

While the U.S. has delayed some additional tariffs and resumed talks with global trading partners, the long-term impact of trade disputes is severely damaging the global wine market, says the American Association of Wine Economists.

STZ stock has declined nearly 30% this year to trade at $160.56 U.S. per share.