US to investigate Canada ban on American alcohol
US congresswoman Claudia Tenney has introduced new legislation to initiate an investigation into Canada’s ‘discriminatory’ boycott of American alcohol.
Since March 2025, all but two Canadian provinces have taken US-made alcohol off their shelves due to trade tensions. The move has caused exports of American spirits to plunge by 70% to Canada.
Tenney has introduced the Combating Attacks on our National Alcoholic Drinks by Allies (Canada) Act, which directs the US trade representative to begin a Section 301 investigation into the importation and distribution of American alcohol sold through provincial liquor boards.
The new act requires that an investigation begin within 30 days of enactment to determine whether the Canadian provinces’ boycotts are actionable under Section 301 of the Trade Act of 1974.
A press release from Tenney’s office said the ban on American alcohol in Canada has ‘harmed US producers and limited their access to an important export market’.
The move also follows a comment from US trade representative ambassador Jamieson Greer, who said the dispute would likely be resolved through enforcement action.
The legislation also requests that the trade representative engage with affected alcohol producers, industry stakeholders, and federal agencies during the investigation.
“Canadian provinces cannot be allowed to hold American wineries, breweries, and distilleries hostage and attempt to ransom them,” said Tenney.
“American wineries, breweries, distilleries, and other beverage producers deserve fair access to Canadian markets, not discriminatory treatment from one of our closest trading partners.
“Nearly all of Canada’s provincial liquor boards have unfairly targeted US producers and harmed hardworking American businesses due to unrelated policy issues. Beyond the harm they’ve caused to American businesses, these prohibitions are an active impediment to a productive, smooth USMCA [US-Mexico-Canada Agreement] renegotiation process.
“Given that the Canadian provinces have refused to act constructively, I introduced the Canada Act to ensure that the United States takes the necessary steps to hold Canada accountable until the provinces drop their unjustifiable import bans. America must always stand up for our producers, our workers, and fair trade.”
The legislation is also supported by the American Craft Spirits Association (ACSA), Wine Institute and Wine America.
ACSA CEO Emily Pennington added: “For too long, America’s craft distillers have been caught in the middle of a trade dispute that has nothing to do with them.
“We appreciate congresswoman Tenney’s leadership in bringing renewed attention to the discriminatory treatment of US craft spirits in Canada and hope this legislation encourages serious negotiations that restore fair market access for American producers.”
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