ALERT: Trump Bans Your Favorite Canadian Alcoholic Beverages

President Donald Trump‘s ban on Canadian alcoholic beverages took effect on Tuesday, September 29. The measure adds to a trade war of reciprocal tariffs between the United States and Canada that has escalated in recent weeks.

The ban affects Canadian alcoholic beverages worth US$800 million imported by the United States last year. Trump signed the order as part of five proclamations from September 8, which also block Canadian dairy products and motorcycles.

«They want to make a deal with us, they call us all the time,» Trump told reporters on Monday. He added that he expects Canada to present a proposal soon to eliminate the tariffs, though Canadian Prime Minister Mark Carney has not commented on the matter.

What Canadian whisky brands are exempt from the ban

Whisky and liquors, two of Canada’s main alcohol exports, are exempt when sold in containers larger than four liters. In those cases, tariffs do not apply either.

However, taking advantage of that exemption requires repackaging the product in smaller sizes, which are typically sold in liquor stores. This process can raise company costs and, eventually, consumer prices.

Crown Royal, one of the best-known Canadian whisky brands, is in a better position. The company already sends large volumes to the United States, where it bottles locally all products it sells in the domestic market.

Section 338: The 1930 law behind the ban

To impose the ban, Trump relies on Section 338 of the Smoot-Hawley Tariff Act of 1930. This law allows the president to impose tariffs of up to 50% or prohibit imports when another country discriminates against U.S. commerce.

No president had used this provision in this way before Trump. As a result, courts have yet to define what evidence the government must present to justify such measures.

«The use of import bans against an ally is unprecedented,» said Inu Manak, researcher at the Peterson Institute for International Economics, specializing in trade policy. «It is another form of escalation designed to force Canadian negotiators back to the negotiating table.»

How border businesses are responding to the new measure

The manager of a liquor store in Niagara Falls, New York, less than five miles from the Canadian border, spoke with CNN on condition of anonymity. «We have many Canadian customers and sell a lot of Canadian liquor. This is not good for business,» he said.

An employee at a store in Port Huron, Michigan, near Ontario, mentioned that his customers typically buy brands like Crown Royal, Black Velvet, and Rich and Rare. He added that the flow of Canadian shoppers had already dropped notably over the past year.

Chris Swonger, president of the Distilled Spirits Council of the United States (DISCUS), lamented that the alcohol industry became caught up in the trade dispute. «U.S. distillers export around the world. We prefer to compete on the taste and quality of our products, not on tariffs,» he said.

The economic impact on both sides of the border

According to DISCUS figures, U.S. spirit exports to Canada fell 70% after several Canadian provinces removed U.S. wine and liquor from their shelves in March 2025. That measure responded to tariffs the United States had previously imposed.

Canada’s alcohol industry relies heavily on the U.S. market. DISCUS estimates that in 2025 approximately 93% of Canadian spirits were exported to the United States.

Beyond alcohol, the ban extends to dairy products such as whey and Canadian motorcycles. In total, the restrictions affect goods that the United States imported from Canada last year for nearly US$1,000 million, according to federal trade data cited by CNN.

Consumers looking for Canadian alcohol can still find inventory in stores that stocked up before the ban, though those supplies could run out in the coming weeks. It is wise to follow the negotiations between both countries closely, as Trump has said he expects a Canadian proposal before U.S. midterm elections.

The-CNN-Wire
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