Date: August 13, 2026
By: Ebenezer Adugyamfi/ Emmanuel Ayiku for GhanaianNewsCanada
Some Ontario wineries are calling for American wines to be allowed back onto store shelves if doing so could help Canada and the United States resolve their ongoing trade dispute and reduce tariffs affecting Canadian products.
The position comes as the Canada-U.S. trade relationship remains tense, with businesses on both sides of the border facing uncertainty over tariffs and other trade restrictions.
Wineries in Ontario and the United States have told Global News that they would welcome the return of American wines to Canadian shelves if it could contribute to easing the broader trade conflict.
The debate is particularly significant for Ontario’s wine industry, which benefited from a surge in demand for locally produced wine after American alcohol products were removed from provincial shelves.
However, some industry representatives now appear willing to reconsider the restrictions if the move could contribute to a wider agreement with Washington.
Michael Kaiser, executive director of WineAmerica, said wineries on both sides of the border can become caught up in political disputes that have little to do with their businesses.
“We get caught in these trade disputes that don’t really involve us,” Kaiser told Global News.
His comments reflect growing frustration within the wine industry over the impact of political decisions on producers, distributors, retailers and consumers.
The issue dates back to the beginning of the latest Canada-U.S. trade dispute, when Canadian provinces responded to American tariffs by removing or restricting U.S. alcohol products from government-controlled liquor stores.
In Ontario, Premier Doug Ford ordered American alcohol products removed from LCBO shelves in early 2025 as part of Canada’s response to U.S. trade measures.The decision affected a major market for American wine.
The LCBO had previously sold hundreds of millions of dollars’ worth of American wine, beer, spirits and other alcoholic beverages annually, meaning the restrictions represented a significant loss for U.S. producers while simultaneously creating more space for Canadian products.
For Ontario wineries, the removal of American products created an unexpected opportunity.
Consumers looking for alternatives began turning to Ontario and other Canadian wines, helping domestic producers increase their presence on store shelves.
The Ontario Craft Wineries association said in its annual report that it had worked with the LCBO to ensure Ontario VQA products were prioritised after U.S. products were removed. The organisation also noted that additional Ontario wines were added to LCBO shelves during the period.
The Wine Growers Ontario association similarly reported that sales of Ontario wine at the LCBO increased following the removal of U.S. products, as consumers responded to the broader “buy Canadian” and “buy Ontario” movement.
That shift has been welcomed by many Ontario winemakers, who have argued that the trade dispute gave consumers an opportunity to discover locally produced wines.
But the situation has also created difficulties for businesses that depend on cross-border trade.
American wineries have lost access to an important Canadian market, while Canadian producers continue to face uncertainty over the wider economic consequences of the trade dispute.
According to figures cited by the U.S. Wine Institute, American wineries lost more than US$357 million in export value to Canada in 2025, with many of the affected producers being small and family-owned businesses.
The organisation has argued that the continued restrictions are hurting both American producers and Canadian consumers, while competitors from Europe, Australia and New Zealand benefit from the space left on Canadian shelves.
For some Ontario wineries, however, the question is no longer simply about whether American wine should return.Instead, they are looking at the issue through the wider lens of the Canada-U.S. trade relationship.
Canada and the United States have been discussing possible concessions as both countries attempt to prevent further escalation of the trade war.
Reuters reported last week that Canadian officials were considering a number of measures, including facilitating the return of American alcohol to Canadian stores, as part of discussions aimed at avoiding new U.S. tariffs.
The negotiations are particularly important because the United States has imposed significant tariffs on Canadian goods, while Washington has continued to pressure Canada over trade barriers and other issues.
The possibility of restoring U.S. alcohol sales has therefore become part of a much larger conversation about how Ottawa and the provinces can respond to American trade demands while protecting Canadian economic interests.
Ontario wineries now find themselves in an unusual position.
The industry has benefited from Canadians choosing local products, but some producers believe that reopening the market to American wines could be worth considering if it helps secure broader tariff relief for Canadian businesses.
That does not necessarily mean Ontario winemakers want to abandon efforts to promote domestic wine.
In fact, Ontario’s wine industry has continued to push for policies that would make it easier for Canadian consumers to purchase local products, including reforms to interprovincial trade rules.
The Ontario Craft Wineries association has argued that Canada needs to remove barriers preventing Canadian wineries from selling their products more easily across provincial borders.
That issue has become even more important during the trade dispute because Canadian wineries have been encouraged to expand their domestic market rather than depend heavily on exports to the United States.
The debate also reflects the complicated nature of Canada’s alcohol distribution system.
Unlike many other consumer products, alcoholic beverages are regulated heavily by provincial governments, meaning decisions about whether American wine returns to store shelves cannot be made solely by the federal government.
Ontario’s LCBO plays a central role in the province’s alcohol distribution system, making provincial decisions particularly important to the future of U.S. wine sales in Ontario.
For consumers, the potential return of American wine would mean greater choice.
For Canadian wineries, it could mean renewed competition after more than a year in which domestic producers have benefited from reduced competition from U.S. products.
For American wineries, meanwhile, reopening the Canadian market would provide access to a customer base that has historically been one of their most important export markets.
The dispute has also become symbolic of the broader deterioration in Canada-U.S. relations.
Trade restrictions that were initially introduced as political responses have increasingly affected individual businesses and industries that have little influence over government policy.
That is why some wine industry representatives believe the sector should not become a permanent casualty of the dispute.
The argument is that if restoring U.S. wines to Canadian shelves can help produce a wider agreement that reduces tariffs on Canadian goods, the economic benefits could outweigh the disadvantages of renewed competition.
However, the issue remains politically sensitive.
Many Canadians continue to support the removal of American alcohol products as a way of responding to U.S. trade measures, while others argue that economic negotiations should focus on finding practical solutions rather than maintaining consumer boycotts indefinitely.
A recent Global News report noted that a survey found many Canadians still did not want American alcohol products back on Canadian shelves, demonstrating that the issue remains divisive among consumers.
For Ontario’s wine industry, the challenge will be finding a balance between supporting local producers and recognising the realities of Canada’s relationship with its largest trading partner.
The latest comments from Ontario wineries suggest that some within the sector are prepared to take a pragmatic approach.
If allowing American wine back into Ontario can contribute to meaningful tariff relief and reduce uncertainty for Canadian businesses, some producers believe it may be worth considering.
At the same time, Ontario wineries are likely to continue pressing governments to ensure that Canadian producers are not disadvantaged when American products return.
The industry has already called for stronger support for Ontario VQA wines, easier interprovincial trade and policies that give local wineries greater access to Canadian consumers.
Ultimately, the wine debate is about more than what appears on the shelves of Ontario liquor stores.
It has become another example of how the Canada-U.S. trade war is affecting ordinary businesses and forcing governments and industries to reconsider long-standing commercial relationships.
As negotiations between Ottawa and Washington continue, the question of whether American wine returns to Ontario could become part of a broader trade compromise.
For now, Ontario wineries appear divided between protecting the gains made by Canadian wine during the boycott and supporting a deal that could reduce the tariffs and economic uncertainty facing businesses across the country.
With both Canadian and American wine producers expressing an interest in finding common ground, the humble bottle of wine has once again found itself at the centre of a much bigger Canada-U.S. trade dispute.
