Alcohol sales in Canada have seen a sharp decline in 2025, as persistent economic uncertainty and ongoing trade tensions with the United States take their toll on consumer behavior and import activity.
According to new data, alcohol sales dropped by over $100 million across six Canadian provinces in the last quarter alone, compared to the same period in 2024. The downturn is being attributed to reduced discretionary spending among consumers and the dramatic collapse in imports of beer, wine, and spirits from the U.S.
“The consumer is just feeling very fragile,” said CJ Hélie, president of Beer Canada, in an interview Thursday. “People are just pulling back on discretionary spending, and we’re seeing that big-time. Real softness in the market.”
Imports of American alcohol have fallen off sharply. Statistics Canada reported that only about $3 million in U.S. wine entered Canada in April, a staggering 94 per cent drop from $54 million in April 2024. The decline follows provincial-level boycotts earlier this year, where retailers pulled U.S.-made alcohol from shelves in response to escalating trade tensions.
The downturn in imports is being seen as a direct consequence of U.S. President Donald Trump’s intensifying global trade war. Industry groups on both sides of the border had warned of this impact earlier in the year.
“We are deeply concerned that U.S. tariffs on imported spirits from Canada and Mexico will significantly harm all three countries and lead to a cycle of retaliatory tariffs that negatively impacts our shared industry,” read a joint statement issued in February by North American spirits industry associations.
This marks the third major financial crisis in five years for Canadian consumers, compounding the challenges for an already struggling retail alcohol market.
