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Trump’s Trade Conflict with Canada Dampens U.S. Wine Sales

In the thick of the trade conflict initiated by Donald Trump with Canada, my cozy Friday night routine of enjoying Tom Gore’s wine ended. The circumstance was coercive, nevertheless, I was not overly disturbed. Tom Gore had occupied the position of my top wine pick until it was purged from liquor shops owing to the federal and provincial governments’ reaction to the induction of tariffs on Canadian exports to the U.S. The ensuing uproar has made it challenging to keep track of developments.

As it stands, Tom Gore and fellow Californian wines remain absent, but the alternative options I’ve encountered mean I don’t yearn for them. Surprisingly, I’m not alone in this sentiment. Reports suggest a dramatic 94% fall in the sales of U.S. wine to Canada, whereas consumption of Canadian alcoholic drinks has increased. This change is the most conspicuous repercussion of our mutual frustration with our primary trading partner.

A survey conducted by Angus Reid during the initial phase of the complicated trade situation revealed that a significant majority of Canadians, around 80%, were favoring Canadian products as a form of resistance against Trump’s tariff strategy. More than half of the respondents confessed to purposely avoiding U.S. goods. Although, these opinions were gathered in February, roughly the same time when disapproving the American national anthem at hockey matches was seen as acceptable behavior.

Today, we appear to be stepping away from such practices. It is expected that Canada’s distaste for American merchandise will also gradually diminish as Trump diverts his focus from turning Canada into the 51st state of America to other issues. However, a poll by Ipsos revealed this month presented that the reluctance to purchase U.S. products has reached an international scale. Barely half of the 29 countries’ citizens questioned said they would probably buy a U.S.-made item.

Based on this study, 63% of Canadians affirmed they were not likely to buy American products. It appears food and beverage products are at the forefront of this trend, allowing consumers to display their disapproval of Trump through their purchasing decisions. Taking this into account, it hardly comes as a shock – perhaps except to the U.S. administration – that the trade deficit for U.S. agriculture is growing, contrary to predictions.

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This increase became evident when the United States decided to levy taxes on imports, deport immigrant workers vital to its own food chain, and detain tourists in the bid to ‘make America great again.’ The USDA quarterly trade report, which was released this month, saw delays and was stripped of its regular analysis after the initial drafts identified tariffs and the ‘buy Canadian’ movement as reasons for a decrease in demand for U.S. farming goods.

The edited report indicates a trade shortfall of US$49.5 billion for the 2025 fiscal year, marking an increase of US$500 million. This serves as a stark reminder that belittling your top customers is a poor strategy. Canadians should take heed of this lesson as we try to find our way through the complex trading landscape we are likely to encounter for the foreseeable future.

Opting for local produce wherever possible is a sound strategy. Even if it costs marginally more, supporting local businesses and suppliers keeps our earnings within our communities, fostering job creation and stimulating economic growth. Canadian farmers would certainly be grateful for this moral and financial backing.

A distinguishing feature of Canada as a country is its role as a global provider of food commodities. Over half of what our farmers cultivate is exported either directly or indirectly. The U.S. remains our principal trading partner. More than half of Canada’s agri-food imports originate in the U.S., while 60% of Canada’s agri-food exports find their way into the U.S.

The food industries of both nations are highly reliant on this cross-border trade. For this reason, export-focused sectors have continually endorsed a system of trade regulated by laws, voicing opposition to policies that unjustly protect access to domestic markets. Trade ought to be a two-way avenue.

As we draw nearer to Canada Day, expressing our national pride can be beautifully captured by hoisting the flag and relishing Canadian cuisines on our tables. Our collective actions, however small they may seem, can truly make a difference. But does supporting our local market necessarily mean boycotting foreign goods?

Answering this question is a responsibility residing with all of us, and the decision we make will have significant repercussions.