Economy · B.C. Wine Under Pressure
A ban on a rounding error that ruins real wineries
Washington turned a 50 percent tariff into an import ban effective Sept. 29. B.C. exports little wine south, but for exposed producers the door is now shut.
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What does an industry that exports almost nothing to the United States actually lose when Washington bans its wine at the border? That is the question hanging over British Columbia after September 8, when President Donald Trump moved American policy on Canadian alcohol from a tax to an exclusion. 28
Key facts
The September 8 proclamation, issued under Section 338 of the Tariff Act of 1930, excludes a long list of Canadian alcoholic beverages from U.S. importation effective 12:01 a.m. Eastern on September 29, 2026. 28 The list covers the main commercial wine categories, including sparkling and still grape wines in various container sizes, plus vermouth, cider and other fermented beverages, alongside packaged beer and a wide range of spirits. 2 For goods in those categories, the order converts the existing 50 percent Section 338 duty into an outright exclusion, meaning shipments still in transit at the deadline will be turned away rather than taxed. 28 Only stock already entered for consumption before that time stays under the old duty. 2
From tariff to exclusion
- Jul 20, 202649
Washington imposes additional 50 percent Section 338 duty on listed Canadian alcohol.
- Aug 22, 2026106
Duty takes effect after suspension and collapsed talks.
- Sep 8, 202628
White House moves from 50 percent duty to import exclusion after Canadian retaliation.
- Sep 29, 20262
Exclusion takes effect at 12:01 a.m. ET; in-transit listed shipments turned away.
The fight ran in three phases on the beverage front. 910 On July 20, Proclamation 11046 imposed an additional 50 percent ad valorem Section 338 duty on listed Canadian products including wine, beer, cider and spirits, described as a response to provincial bans on American liquor. 49 The duty was set for August 19, then suspended and shifted to August 22 after talks, and took hold once negotiations fell apart in late August. 610 Canada answered on September 8 with its own counter-tariffs, among them an extra Saskatchewan levy on U.S. alcohol, which the White House cited in escalating to exclusion the same day. 834
This is unprecedented. It sets a dangerous precedent.
That last phrase belongs to Jeff Guignard, president and CEO of Wine Growers British Columbia, speaking on CBC News Hanomansing Tonight on September 9. 1 He put B.C. wine exports to the United States at only about 1 million to 1.5 million dollars a year, a rounding error against an industry whose wine and grape activity totaled 3.75 billion dollars in 2019 and supported an estimated 14,272 full-time equivalent jobs. 112 Government figures have put U.S.-bound exports even lower, but the direction is the same: most B.C. wine is sold in Canada, not across the border. 115 Guignard argued the small aggregate hides the real damage, because the ban breaks trust and shuts down importer and restaurant relationships built up over years, relationships a producer cannot simply rebuild on a pivot. 1
The 30 percent that explains everything
The exposure is uneven, and that unevenness is the story. 1 Guignard pointed to one member winery that conducts roughly 30 percent of its business in the United States. 1 That winery is Lightning Rock in Summerland, owned by Ron Kubek. 1 Kubek had been ramping U.S. sales from about 8 percent of production toward much more, with a plan to reach 30 percent of his business in the United States, and said that plan died under the tariffs. 1 He sent one last 50-case shipment before the duty date and said he did not expect to send another soon. 1 For a producer like that, the shift from tariff to ban does not change the direction, it closes the door. 21
In British Columbia, the immediate response is already visible on shelves. 1 The Liquor Distribution Branch has removed U.S. products, part of the provincial measures Washington cited as the trigger for escalation. 18 Guignard urged the province to double down on shelf space for B.C. wine, beer, spirits and cider, and called on consumers to buy B.C. 1 B.C. has 277 licensed grape-wine wineries as of June 2026, of which 201 are members of Wine Growers BC, so the call to buy local is aimed at a crowded home field. 13
A domestic market not yet open
The longer answer, in his account, is at home rather than across the border. 1 Canada must finish removing interprovincial trade barriers, with winery-to-consumer movement now nearly resolved but winery-to-business direct sales still blocked by fees and differing provincial rules. 1 Nine premiers signed a landmark operating agreement on July 21, 2026 that allows wineries, distilleries and breweries to sell directly to consumers across provincial lines, while Quebec declined to join. 2330 Yet British Columbia committed to having its full direct-to-consumer system for all alcohol categories in place only in February 2027. 28 Eight jurisdictions began implementing at once, but B.C. already allows direct sales of Canadian wine and the 2027 date is for expanding to beer, spirits and reciprocal shipping. 28
Known
Unknown
- No verified count of how many B.C. producers share Lightning Rock's U.S. exposure.
- No announced federal remedy tied specifically to the Sept. 8 exclusion.
Next
- Whether in-transit shipments are turned away at midnight Sept. 29 without exception.
- Whether Ottawa reopens talks and whether B.C. accelerates domestic shelf and shipping relief before Feb. 2027.
In Ottawa, the response so far has been about the broader pivot rather than this specific ban. 5237 Prime Minister Mark Carney said Canada has everything it needs to pivot and prosper, that the pivot will come at a cost, and that there is always a cost to action but it does not come close to the cost of standing still, framing the strategy as ensuring no country can hold Canada hostage. 5237 Canada-U.S. Trade Minister Dominic LeBlanc called the American measures unjustified, said he would work to protect Canadian workers, families and businesses, and said he had reached out to his U.S. counterpart to work in good faith. 5237 But no new negotiations have been scheduled since talks collapsed in late August, and there is no announced federal countermeasure tied specifically to the September 8 ban beyond the tariffs and provincial restrictions already in force. 3752 The ban lands September 29. The fuller domestic market will not arrive until February 2027. Those two dates frame the predicament. 228
As aired 12 lines
- The United States is about to turn away Canadian wine at the border.
- That's the step Washington has taken. A proclamation signed September 8 excludes a long list of Canadian alcohol — main wine categories, packaged beer, spirits — from U.S. importation, effective 12:01 a.m. Eastern on September 29. It converts the 50 percent tariff imposed in July into an outright exclusion: shipments still in transit at the deadline will be turned away.
- For B.C.'s wine industry, the direct export loss is small — about a million dollars a year. But the trade group calls it a dangerous precedent, and the reason is uneven exposure. One member winery does 30 percent of its business in the U.S. So what does an industry that exports so little actually lose? The answer is in the scale of the individual producers.
- The fight has run three phases. Washington imposed a 50 percent tariff on Canadian wine, beer and spirits in July, suspended it after talks, then let it take effect on August 22. On September 8, Canada answered with its own counter-tariffs — including an extra Saskatchewan levy on U.S. alcohol — and the White House responded the same day by moving from a tax to a ban. The exclusion applies to any shipment still in transit at the deadline.
- The aggregate hit looks like a rounding error against a $3.75 billion industry. But Lightning Rock Winery in Summerland had built a third of its business south of the border. That is the difference between a statistic and a crisis.
- Guignard says the ban breaks trust and shuts down importer and restaurant relationships built over years — relationships a producer cannot simply rebuild on a pivot.
- Kubek said the plan died under the tariffs. The shift to an outright ban closes the door entirely.
- The province has already pulled American products from shelves. The industry's answer is to take that space for itself and ask consumers to buy homegrown.
- The ban lands September 29. The domestic market B.C. wine is being asked to rely on won't fully open until February 2027 — more than a year of exposure.
- That domestic opening is the longer-term answer. Nine premiers signed an agreement on July 21 to let wineries sell directly to consumers across provincial lines, but Quebec and Yukon didn't join, and B.C. has committed to full implementation only in February 2027. Winery-to-business direct sales are still blocked by fees and differing provincial rules.
- In Ottawa, the response has been about the broader pivot. Prime Minister Mark Carney said Canada has everything it needs to pivot and prosper, but it will come at a cost. Trade Minister Dominic LeBlanc called the American measures unjustified and said he had reached out to his U.S. counterpart. But no new negotiations have been scheduled since talks collapsed in late August, and there is no federal countermeasure specifically tied to the ban beyond the tariffs and provincial restrictions already in force.
- So the answer to the open question is this: the small export number hides the fact that for some wineries, the U.S. market is a lifeline, not a luxury. The domestic market that is supposed to replace it won't be ready for over a year, and no negotiation channel has reopened. That is the predicament B.C. wine faces as of September 29.
Sources
- U.S. alcohol ban sets ‘dangerous precedent,’ B.C. wine industry warns | Hanomansing Tonight
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Revision log
- r1First published.