Distiller James Lester has become accustomed to the unpredictable nature of the trade war, but he is now facing a different challenge – being excluded from the U.S. market entirely.
“It’s a bit disheartening, to be honest,” said Lester, who is the founder and operator of Sons of Vancouver distillery based in British Columbia.
Effective as of 12:01 a.m. ET on Tuesday, the U.S. has imposed bans on certain Canadian alcohol products, dairy byproducts, motorcycles, and molasses, preventing specific producers from accessing the U.S. market altogether.
Sons of Vancouver typically ships a small amount of wheated rye to the U.S. each year, accounting for less than 10 percent of their total business. However, this change comes as a setback for Lester, who had been diligently working to establish relationships and expand the business in the U.S.
“We still have a limited supply available online in the U.S., but that will likely be the last for the foreseeable future,” Lester mentioned.
This restriction leaves Lester with limited options for his American customers, as even if they were to come to Canada to purchase a bottle, they would not be able to bring it back to the States with them.
The import ban intensifies the trade war, particularly in the alcohol sector, which has been a contentious issue for politicians on both sides of the border during the tariff dispute.
Small-scale producers are expected to be the most affected by the import bans on certain alcohol products. Spirits producers, in particular, could face significant challenges as Canada exports more liquor to the U.S. than beer or wine. In 2025, the U.S. imported spirits worth $673 million, compared to $62.1 million worth of wine and $19.2 million worth of beer from Canada, according to trade data from the U.S. Census Bureau.
While the ban exempts certain types of liquor barrels above a specific volume and eliminates tariffs on bulk shipments of certain whiskies and liqueurs, smaller players in the industry are likely to bear the brunt of the impact compared to larger multinational companies.
According to international trade lawyer Robert Glasgow of KPMG Law, breweries, distilleries, and vineyards, especially the smaller independent establishments heavily reliant on U.S. trade, could face significant repercussions from the import ban.
Despite the challenges posed by the ban, larger companies like Crown Royal, which already ship bulk whisky for bottling in the U.S., are better positioned to weather the restrictions.
The White House has cited Canada’s alleged “discrimination” against American alcohol, among other products, as a reason for imposing new tariffs. This move has had wide-ranging effects, impacting industries from milk to synthetic wigs.
Alcohol has emerged as a focal point in the trade dispute due to its cultural significance and the emotional connection consumers have with certain brands. The trade war has disrupted the flow of alcohol products between Canada and the U.S., leading to financial losses for businesses on both sides of the border.
Despite the challenges, there is hope for a resolution to the trade tensions so that long-standing trading partners can resume normal business operations and consumers can once again enjoy their favorite products.