One year later, tariffs hit U.S. spirits exports hard
By: Olivia Evens
Louisville Journal
USA today Network
LOUISVILLE - March 4 [2026] marked one year since provinces across Canada removed U.S.-made spirits from their shelves in response to tariffs enacted by President Donald Trump - leaving American distillers without access to one of their largest trading partners.
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Canada, which was the second-largest market for U.S. spirits exports in 2024, imposed a 25% tariff on all U.S. beverage alcohol products. it began March 13, 2025, and was eventually lifted in August. [2025]
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Today, [03/12/2026] the tariff situation remains, to excuse the pun, muddled. The Supreme Court ruled February 20 [2026] that Trump lacks the authority to impose broad, sweeping tariffs under the International emergency Economic Powers Act, including the 35% tariffs he imposed on Canada in March 2025. But trump has pressed on, saying he intends to continue utilizing tariffs on foreign trade partners.
..... Currently U.S. tariffs are suspended on imports from Canada that comply with he United States-Canada-Mexico Agreement. However, according to the Distilled Spirits Council of the United States, "Most Canadian provinces continue to ban U.S. alcohol products form retail stores,"
..... DISCUS found that Canada's reaction had a major financial impact.
..... Spirits exports from the United States to Canada plunged from $203 million in 2025 between March and December. full-year experts in 2025 crested at $89 million, down nearly 63% from 2024 - dropping Canada's status to the sixth-largest export market, DISCUS reported. Meanwhile, DISCUS found that in 2025, the United States imported $691 million worth of Canadian spirits, up nearly 11% from 2024.
.... "One year after U.S. spirits were removed from retail shelves across Canadian provinces, the damage to American distillers is unmistakable. this policy as caused real and avoidable harm to an industry that has long championed open markets," Chris Swonger, president and CEO of DISCUS, said in a statement. "We deeply value our Canadian consumers, who have embraced the quality and diversity of American spirits for decades. We urge both governments to come back to the table to restore permanent tariff-free trade."
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Bourbon distillers have faced sales slumps and negative financial impacts.
..... Brown-Forman, which makes brands including Jack Daniels, Woodford Reserve and Old Forester,s aw organic net sales decline almost 60% in Canada in the first quarter, it said during an earnings call in august 2025.
..... Kentucky politicians, including Democratic Representative Morgan McGarvey and Republican Senator Rand Paul, have frequently condemned Trump's tariffs, noting both the immediate and the lasting impacts on Kentucky distillers, farmers and residents.
..... "From bourbon getting wiped off Canadian shelves to Louisville families paying $1,300 more a year just for everyday goods and services, Kentuckians have been footing the bill for this President's reckless, ego-driven trade war," McGarvey said following the February 20 [2026] Supreme Court ruling.