Canadian import ban prompts shift
Both sides hopeful to avoid long-term ban, expert notes
The U.S. beverage alcohol market has navigated the impact of tariffs on not just materials but also finished products in recent years. However, a new variable arose in late September. Effective Sept. 29, and still in effect as of press time, is an import ban on certain Canadian products, including certain beverage alcohol products of Canada.
Ed Brown, chair of Burr & Forman’s Food and Beverage practice, notes that prior to the ban, wholesalers were able to secure products, still impacted by tariffs, but this approach is more useful for spirits and wine than beer due to the limited shelf life. Because of this, Brown notes the importance of splitting beer and spirits and wine when looking at short-term performance.
Bottles, cans and kegs are included in the ban; however, bulk shipments of product subject to being packaged in the United States are outside the restriction. This again would be more applicable to spirits than beer producers, Brown explains. Tariffs still remain in effect.
Some Canadian beverage alcohol products that already have production operations also wouldn’t be subject to the ban, Brown says.
Brown anticipates short-term impacts will be mostly seen in New England states and Northern states along the border.
“Consumers will change behavior,” Brown says.
Those shifts could venture to European products; however, those still will be subject to tariffs. Yet, Brown expects domestic products, particularly beer, to benefit thanks to the variety in market. He compares this with what the market sees during a recession, when consumers might trade down to save money. With the ban, consumers likely are to shift to other products on shelves, he adds.
This ban in the United States follows Canadian provinces removing U.S. wine and spirits products from store shelves in March 2025. Alberta and Saskatchewan are the only two provinces that have since lifted their bans. However, Saskatchewan Premier Scott Moe announced a 50% tax on American alcohol effective Sept. 8, according to the Toasts Not Tariffs Coalition.
Brown notes that hopes on both sides are that the ban doesn’t last long-term.
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