On July 6, 2026, U.S. Congresswoman Claudia Tenney introduced the Combating Attacks on our National Alcoholic Drinks by Allies (CANADA) Act, aiming to hold Canada accountable for provincial restrictions on American alcoholic beverages. The legislation directs the U.S. Trade Representative to initiate a Section 301 investigation into these practices.
The CANADA Act responds to Canadian provincial liquor boards' prohibitions on American alcohol imports, which began in March 2025 following U.S. President Donald Trump's tariffs and threats of annexation. While provinces like Saskatchewan and Alberta have resumed purchasing American alcohol, major markets such as Ontario and Quebec have not.
Tenney criticized the bans, stating that Canadian provinces cannot "hold American wineries, breweries, and distilleries hostage." She emphasized the need for fair access to Canadian markets for American producers.
The U.S. Trade Representative, Jamieson Greer, has previously indicated that resolving these discriminatory practices may require enforcement actions. The CANADA Act seeks to address this issue by compelling an investigation into the matter.
The legislation has garnered support from the U.S. alcohol industry, which has experienced a significant decline in exports to Canada due to the bans. The Distilled Spirits Council of the United States reported an 85% drop in exports to Canada in the second quarter of 2025 compared to the previous year.
The introduction of the CANADA Act adds a new dimension to the ongoing trade tensions between the U.S. and Canada, particularly concerning the alcohol industry. The outcome of the investigation could have significant implications for bilateral trade relations.
As the situation develops, stakeholders on both sides are closely monitoring the legislative process and its potential impact on trade dynamics.