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A trade war, two beer importers, two very different outcomes

2 weeks ago 9

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Maui Brewing is Hawaii’s largest independent craft brewery and one of the 50 biggest craft brewers in the U.S.

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“He was game. He didn’t hesitate,” Goddard said of Maui co-founder Garrett Marrero’s initial response.

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The companies began discussions in the summer of 2025 and signed a licensing agreement that November. Test brewing followed this past spring, with commercial production beginning in May.

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Marrero said his company had considered expanding into Canada for years, but the cost of shipping beer from Hawaii made it difficult to compete.

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“It presented a unique opportunity because there’s really no American beer going to Canada at that moment,” he said.

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Brewing locally reduces shipping and storage costs and can save 30 to 60 days in transit, he said, helping ensure the beer reaches consumers fresh. Maui is considering similar production arrangements in other international markets, including Japan and Brazil.

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Maui Sunshine Golden Ale reached Liquor Control Board of Ontario shelves in early September and was available in about 100 stores by early October. Marrero said the provincial Crown corporation has already expressed interest in carrying more Maui products.

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Under the licensing arrangement, Craft Brand and its brewing partners handle production, packaging and associated expenses in Canada, while Maui receives royalties. Goddard estimated the startup costs were roughly $50,000.

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Brewing Maui beer in Niagara Falls supports Canadian production and jobs, but it’s still a U.S. brand at a time when many Canadian consumers are turning away from such products.

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“The big question for us is will Canadians drink American craft beer made in Canada?” Goddard said. “Who knows? We’re about to find out.”

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Marrero said he understands consumers may choose to boycott U.S. brands, but believes commercial and personal relationships should not become casualties of political disagreements.

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“I’d rather not be drawn into the politics behind what’s happening between our two countries,” he said. “However, I think there’s more people that would rather connect than separate.”

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Esber said there is no comparable workaround for his business since it depends on bringing Canadian beer into the U.S., something the import ban has made impossible.

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He is sharply critical of the dispute, blaming both governments for allowing it to escalate rather than negotiating a settlement.

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“We obviously don’t think what’s going on on the U.S. side is proper,” he said, adding that Canada’s retaliatory measures have also gone too far.

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The dispute has also put a strain on long-time relationships with some of his Canadian brewery partners. One of them even refuses to visit.

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“Some of them are very angry at the U.S. and I don’t blame them,” Esber said. “The others realize that we’re all in the same boat.”

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But relatively few Canadian craft breweries were exporting to the U.S. in the first place, according to Christine Comeau, executive director of the Canadian Craft Brewers Association.

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Canada exported roughly US$78-million worth of beer to the U.S. in 2024, according to international trade data, which Agriculture and Agri-Food Canada said accounted for just one per cent of U.S. beer imports by value that year.

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Craft beer is predominantly a local business, she said, since shipping costs can quickly become prohibitive, particularly for a relatively inexpensive product that must also be kept cold to preserve its quality.

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