Spill It: Canadian Wine/Spirits-Makers Talk Tarrifs, Trade Barriers & Buying Local 

In early February, Canadian liquor stores pulled American alcohol in response to tariff disputes—only to restock it when the situation was put on hold. The future remains uncertain, but local makers are speaking out about the pros and cons of navigating this unpredictable landscape. 

Christine Coletta, co-owner of Okanagan Crush Pad, believes U.S. tariffs may not immediately impact Canadian wines, but warns of potential consequences. “To my knowledge, only a minuscule amount of Canadian wine is sold in the U.S.,” she says. “So, tariffs won’t really affect our presence in that market. But if Canada imposes retaliatory tariffs on American alcohol, that could impact the U.S. wines available in our monopoly liquor system.” 

“The wine business,” adds Township 7 winemaker Mary McDermott, isn’t “for the faint of heart. We’re at the mercy of Mother Nature every year but, beyond that, we face macroeconomic challenges, cross-border shipping issues and now tariffs. There’s never a dull moment.” 

For wineries, unpredictability makes planning hard. “Our industry supply chain is deeply tied to the U.S.,” says winemaker Evan Saunders of Blasted Church Vineyards. “With the situation changing so fast, we’re reassessing suppliers and looking for ways to minimize exposure over the coming months—possibly even years.” 

Beyond the wine itself, tariffs could also impact packaging and production costs. “A lot of our glasswork comes from the U.S.,” explains Chris Noske, president of Heritage Acres Distilling. “If tariffs hit, we’re looking at a big spike in costs. Most craft distilleries can’t afford to order full trailer loads of glass from China or India, so this could be a serious issue.” 

With economic uncertainty looming, more Canadians are choosing to shop local—but will it be enough to sustain the industry? Michael Leskovec, CEO of The Grange of Prince Edward Winery, believes buying local is about more than just supporting businesses—it’s an investment in Canada’s economy. “It strengthens our economy, ensures a stable, reliable supply chain and keeps quality high,” he says. 

And competing with mass-produced foreign wines, according to Louise Engel of Featherstone Estate Winery, remains a challenge. “In Canada we pay fair wages to employees, but we’re up against … bulk wines from places like California, where subsidies make their products cheaper. But this situation reminds us why it’s important to support local businesses—it keeps our economy strong, and let’s be honest, your kids’ summer jobs are probably at some of those wineries.” 

Another roadblock? Getting Canadian alcohol into the hands of consumers across provincial borders. Leeann Froese, owner of Town Hall Brands, says interprovincial trade restrictions are holding the industry back. “Technically, the federal government says we can ship wine between provinces, but in reality, only a couple have made it legal. Alberta finally opened up last month, but many provinces still need to follow suit.” 

For small distilleries, these restrictions make it difficult to grow. “There’s no benefit to being a ‘Canadian’ spirit brand when there’s no free trade between provinces,” says Jessica Chester, co-owner of Ontario’s Laneway Distillers. “Unless you’re a massive, internationally owned brand, you’re stuck.” 

Craft distilleries face additional challenges compared to wineries and breweries. “We don’t receive the same support as B.C. craft wineries and breweries,” says Celia Chiang, president of The Woods Spirit Co. “High excise taxes, strict sales regulations and the dominance of global brands make it incredibly tough for small producers to compete. With potential new tariffs, our governments need to level the playing field.” 

Besides choosing Canadian-made wine and spirits at the liquor store, there are other ways to support local businesses. Says Froese: “Instead of vacationing abroad this year, people are planning trips to Canadian wine country. There’s a real sense of patriotism that’s translating into tourism and support for local wineries.” 

She encourages Canadians to do the same for distilleries. “Make a day of it—visit a local distillery, enjoy their tasting room, grab lunch and stock up on spirits to take home. That kind of support makes a real difference.” 

Whether it’s the looming tariff situation, the ongoing struggle with interprovincial trade or the push to keep Canadian dollars in Canada, one thing’s clear: the country’s wine and spirits industry is at a crossroads. What happens next depends on consumers, policymakers and industry leaders working together to keep local businesses thriving. —Catherine Dunwoody