The U.S.-Canada trade spat is creating a headache for American liquor and winemakers.

Canadian provinces, which largely handle alcohol imports and distribution, stopped placing orders for American-made spirits, beer and wine after President Trump initiated a series of trade battles with Canada earlier this year. In liquor stores, clerks pulled U.S. brands off shelves, replacing them with Canadian products.

The WSJ’s Laura Cooper and Vipal Monga write that the hit to the U.S. alcohol industry is now coming into view. The Distilled Spirits Council, an industry group, estimates exports of U.S. distilled spirits to Canada over the first six months of this year at $43.4 million, down about 62% from the same period in 2024. Wine Institute, a trade group representing California-based wineries, estimates that in six months, U.S. wineries have lost more than $173 million in export value.

For Paso Robles, Calif.-based Hope Family Wines, sales to Canada have fallen by about 10% so far this year. Baltimore-based Sagamore Spirit says Canada’s share of its foreign sales has fallen to zero from 10%. The craft distillery’s CEO says the roughly $2 million in lost sales is a significant hit for a small business.

Wild swings in commodity prices are prompting one retailer to change store prices every few months. The WSJ’s Jennifer Williams reports that Rocky Mountain Chocolate Factory is instituting quarterly pricing adjustments for truffles, chocolate-covered pretzels and more to account for the turbulent cocoa market.

Cocoa prices are swinging because of poor weather and plant disease. They were hovering this week at around $8,660 a metric ton, above historical levels but below the $12,000 they hit in December.

Rocky Mountain Chocolate Factory executives say the company is able to rapidly change prices after it revamped its data collection on sales, input costs and other items. The company monitors sell-through, inventory trends and product performance in real time and at a store level and can see the margins tied to each product. Executives say they are watching for signs of pricing fatigue and will lower prices when possible.

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U.S. and European Union trade negotiators are closing in on a joint trade statement between the two regions. (WSJ)

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Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

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