Overview
- On July 8, Republican Rep. Claudia Tenney introduced the CANADA Act to force the U.S. Trade Representative to open a Section 301 probe into Canadian provincial liquor board restrictions within 30 days if the bill becomes law.
- Ontario Premier Doug Ford publicly rejected U.S. pressure and said the province will not lift its ban until the United States removes tariffs he says harm Canadian jobs or until CUSMA is renewed, writing “we won’t back down.”
- The Wine Institute reports U.S. wine exports to Canada plunged about 78% between 2024 and 2025, costing roughly $357 million and triggering layoffs and closures at some wineries, including partial shutdowns at E. & J. Gallo and small producers that have shut permanently.
- California lawmakers and Sen. Adam Schiff have sent letters urging Québec to reopen imports to American wine and drafted legislative measures to provide aid and market support for growers affected by the loss of Canadian sales.
- Provincial liquor boards control imports and distribution in Canada, which allowed the bans to take effect and shifted sales toward domestic producers, and the next move will likely be either a USTR investigation if Tenney’s bill advances or trade negotiations tied to CUSMA that could restore market access.