Core Insights - The imposition of additional tariffs by the U.S. on Canadian goods has led to a significant consumer boycott of American products in Canada, particularly affecting alcoholic beverages [1][2] - The Canadian Distillers Association reported a 62% decline in U.S. distilled spirits exports to Canada in the first half of the year, amounting to $4.34 million [1] - The California Wine Association estimated a loss of over $173 million in U.S. wine exports to Canada, which accounted for 35% of total U.S. wine exports in 2024 [2] Group 1: Impact on U.S. Alcohol Exports - U.S. distilled spirits exports to Canada dropped by approximately 62% in the first half of the year [1] - U.S. wine exports to Canada decreased by about 67% [1] - The CEO of Sagamore Spirit indicated that the company's sales to Canada have fallen from 10% to zero, resulting in an estimated loss of $2 million [2] Group 2: Canadian Market Response - Ontario's Liquor Control Board reported that sales of U.S. spirits and wines have dropped to zero, while local sales increased by 14% since the boycott began [2] - Some consumers in Alberta are stockpiling American alcohol due to concerns over future availability, leading to a 30% increase in U.S. wine sales and a 7% increase in bourbon sales [3] Group 3: Broader Implications - The boycott has not only caused market disruption but also signifies a breakdown of trust between the U.S. and Canada, impacting farmers and businesses reliant on international markets [2] - The situation reflects a significant shift in consumer behavior and market dynamics in response to trade tensions [3]