Tariffs, Canadian retaliation crush U.S. wine, beer industries
Published 9:57 am Friday, August 14, 2026
American wine and beer leaders say tariffs are crushing their already struggling industries, resulting in retaliation from the country’s trading partners, uncertainty and higher business costs.
That was the theme of an online discussion held Aug. 13 with Oregon and Colorado’s treasurers.
Jana McKamey, Oregon Winegrowers Association executive director, said wine is an iconic part of Oregon’s identity and “it’s something that we want to be able to share with folks around the world.”
But tariffs resulted in bans on United States alcohol in eight of 10 provinces in Canada, typically America’s No. 1 export market for wine and craft beer.
“This is the most catastrophic single-year trade disruption in the history of U.S. wine exports,” McKamey said.
Steep declines for wine exports to Canada
In 2025, Oregon wine exports to Canada plummeted 83% to 13,500 cases, according to an Oregon Wine Board report.
The Wine Institute estimated U.S. wine exports to Canada fell 78%, with $357 million lost in 2025.
The White House said that from March 2025, when provincial bans were enacted, through February, Canadian imports of U.S. alcohol dropped by $582 million compared to the same period in 2024-25.
Even in Alberta and Saskatchewan, which didn’t ban U.S. alcohol, there’s anti-American sentiment, McKamey said, adding that wine that would have gone to Canada doesn’t have an easy domestic sales route because the market is oversaturated.
Canadian tourism also is down 30% to Portland as of May, hampering tasting room sales, she said.
In response to provincial alcohol bans and other trade issues, President Donald Trump issued a proclamation imposing additional 50% tariffs on targeted Canadian goods such as wine. The additional tariffs went into effect Aug. 19.
Increased costs, less consumer spending
McKamey said tariffs have also resulted in increased costs for imported bottles, corks and barrels.
Shawnee Adelson, Colorado Brewers Guild executive director, said costs for cans, kegs and specialty equipment also increased, adding that businesses have to decide whether to raise prices and lose customers or simply eat costs.
Bart Watson, CEO of the Brewers Association, said free trade has benefitted American brewers, who use foreign hops and malts to create some specialty beers.
According to the Oregon 2026 Tariff Impact Analysis, released Aug. 3, Oregon importers paid nearly $3 billion in tariffs between March and December 2025. Expected benefits, such as bringing supply chains back to America and boosting related employment, haven’t materialized, the analysis stated.
Farmers also have had to pay more for equipment such as tractors, combines and fencing. Trade policy also has exacerbated supply problems for fertilizer.
Lower margin exports to Asia are facing difficulties due in part to retaliatory tariffs, making seed, hay, frozen fruits and frozen vegetables uncompetitive in those markets, according to the analysis.
Households also were hit by nearly $2,000 in additional costs from tariffs in a year and have less money for frills such as alcohol, Oregon Treasurer Elizabeth Steiner said.
“Tariffs are bad for consumers, bad for businesses and bad for our state,” she added.
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