B.C. Wineries Look to Direct-to-Consumer Sales as U.S. Tariff Threats Raise Concern

Emma MacLeod

7/23/20263 min read

British Columbia’s wine industry is watching two major developments closely: renewed U.S. tariff threats and a long-awaited effort to reduce barriers to selling alcohol across provincial borders.

On Monday, U.S. President Donald Trump threatened new 50 per cent tariffs on a range of Canadian goods, including wine.

One day later, premiers from nine provinces, including B.C., signed an agreement aimed at allowing out-of-province direct-to-consumer alcohol sales.

For B.C. wineries, the agreement could open the door to selling more bottles directly to customers across Canada.

Wineries Welcome Move, but Want Details

Doug Bell, owner of Northern Lights Estate Winery in Prince George, said he is cautiously optimistic.

“It’s great news, B.C. wineries have been asking for this for many, many years,” he said on Peazzi’s BC Today.

But Bell said there are still major questions about how out-of-province sales will actually be regulated.

He said the details will matter, especially for smaller producers that may not have the staff or resources to manage complicated legal and reporting requirements.

“They are the ones that don’t have the resources to be able to support all the legal obligations that will come inevitably from this type of endeavour,” Bell said.

Industry Warns Against More Red Tape

Jeff Guignard, president and CEO of Wine Growers B.C., said the premiers’ agreement is only a first step.

He said governments still need to develop the legal framework that will determine how direct-to-consumer alcohol sales work in practice.

Guignard said the agreement still allows provinces to set their own markups and fees, which could create a patchwork of different rules across the country.

That is something his organization wants to avoid.

“Just permit a customer to order a Canadian product from a Canadian producer and ship it across the borders,” he told Peazzi’s Daybreak South.

He said provinces can charge sales tax if needed, but should avoid adding more red tape or reporting requirements.

Calls to Expand Beyond Direct Sales

James Donaldson, CEO of B.C. Food and Beverage, called the agreement a positive step.

But he said premiers should not stop at direct-to-consumer sales.

Donaldson said he wants to see B.C. products more widely available in other provinces, including on liquor store shelves.

“We want to see B.C. products on Ontario liquor store shelves and vice versa, there’s so much opportunity for economic growth,” he said.

Tariff Threats Add Pressure

While only a small share of B.C. wine is exported to the United States, the threat of steep new tariffs is still worrying producers.

The B.C. government said the province exports between $1 million and $3 million worth of wine globally each year.

Of that, between $200,000 and $700,000 goes to the United States.

A spokesperson for the Ministry of Agriculture said most B.C. wine is enjoyed by Canadians.

Bell said his winery does not export to the United States, but noted that a significant portion of B.C. wine sold abroad does go south of the border.

He said a 50 per cent tariff would likely make those wines too expensive to compete in the U.S. market.

“[It] will make the product non-competitive for the medium and long term,” Bell said.

“We’ll just have to hope that it isn’t long lived.”

Canadian Markets Seen as More Important

Bell said the tariff threat may not force wineries out of business immediately, but it does show why B.C. producers need stronger access to markets across Canada and overseas.

For many wineries, direct-to-consumer sales could become an important way to reach new customers without relying as heavily on exports.

B.C. has indicated it wants to allow companies to sell directly to consumers by February 2027.

However, there is still no firm timeline for similar changes in other provinces and territories.

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