Trade Tensions Affect U.S. Wine Market in Canada

My weekly practice of sharing Friday night pizza with a glass of Tom Gore ended around the same time President Donald Trump initiated his tariff feud with Canada. The dissolution of this routine was involuntary, yet not entirely uninvited. Tom Gore, my preferred wine brand, ended up being removed from off-the-shelf liquor offerings as a collateral impact of Canada’s retaliation against the additional taxes levied on Canadian exports to the U.S. With multiple events transpiring simultaneously, it has been quite a challenge keeping up with the developments.

The reality is that Tom and many of his Californian compatriots are still in a state of banishment, but I have since discovered replacements that make me not miss the older ones. Apparently, I am not the only one who has adapted. U.S. wine sales to Canada reportedly plunged by 94%, while Canadian alcoholic beverage purchases have increased. These, probably being the most significant indicators of a rising disillusionment with our biggest trading ally.

During the early days of this chaotic trade scenario, an Angus Reid survey revealed that four in every five Canadians were opting to buy more of our local products, a potential push back against Trump’s tariff strategy. In fact, a considerable three out of every five confessed that they were expressly abstaining from procuring any American goods. However, this data was collected in February, a time when jeering at the U.S. anthem during hockey matches was still a trend. Thankfully, we have since grown beyond that point.

Presumably, the general distaste for American goods in Canada may commence to soften now that Trump has moved his focus away from potentially annexing Canada as the 51st state. Yet, an Ipsos survey published recently shows that the reluctance to purchase products ‘Made in the USA’ has become a worldwide phenomenon. Only less than half of the 29 countries surveyed reportedly indicated a willingness to buy U.S.-manufactured goods.

As per the findings of this survey, a startling 63% of Canadians stated that they were not inclined to purchase American products. The sectors of food and beverage took the lead in the list of consumer goods where the potential to exercise a monetary vote exists. Essentially, snubbing Trump every time they restock.

Given this landscape, it’s no anomaly — except according to the U.S. administration — that the American agricultural trade deficit is expanding rather than contracting. This goes contrary to the promise made when the administration decided to impose tariffs, marginalize immigrant workers who were vital to their food supply and increase detainment of tourists under the ‘make America great again’ banner.

Earlier this month, the release of the USDA quarterly trade report was allegedly delayed and stripped of its usual evaluative narrative after the original draft attributed tariffs and the ‘buy Canadian’ movement as the underlying causes for lower demand for U.S. agricultural goods. The edited report projected a US$49.5 billion trade deficit for fiscal year 2025, an increment of US$500 million.

This serves as a testament that ridiculing your most valuable customers is never a smart move. The Canada-U.S trading context provides a key lesson for us Canadians in exploring ways to traverse the complex trading landscape we are likely to confront in the foreseeable future.

It’s always a commendable practice to champion local suppliers, even if it takes a slight premium. Investing in local businesses enables our hard-earned money to circulate within our community thereby fostering job creation and boosting economic growth. We can rest assured that our farmers genuinely appreciate this moral and fiscal gesture.

However, one of the salient features of Canada as a nation is its role as an international provider of food commodities. Over half of our agricultural produce is exported either directly or indirectly. The United States continues to be our most substantial trading partner.

More than half of Canada’s imported agri-food products originate from the U.S., while 60% of our agri-food exports find their way to the U.S. market. The food industry in both nations heavily relies on this inter-country trade. Therefore, export-oriented sectors have consistently echoed their support for a rules-based trade and resistance to policies that unnecessarily restrict access to domestic markets.

Reciprocity must exist in trade. As Canada Day draws closer, showcasing our national pride through the consumption of Canadian foods is indeed a meaningful way of celebration. Our collective personal actions do play a part in influencing the larger picture.

However, does endorsing local necessarily equate to boycotting others? That’s a question we must each ask ourselves. The choice to consciously support local businesses while maintaining a balanced approach to international trade is something we, as consumers, must judiciously make.