US whiskey exports to Canada collapse nearly 70% after Trump tariff fight
LOUISVILLE, Ky. — A year after Canadian provinces pulled American whiskey from store shelves in a trade dispute sparked by President Donald Trump’s tariffs, U.S. spirits exports have plunged by nearly 70%, devastating what had been one of the industry’s most important international markets.
In 2025, Canada fell from the second-largest buyer of American spirits to sixth, as exports dropped two-thirds to $89 million, according to data from the Distilled Spirits Council of the United States (DISCUS).
Before the dispute, American distillers earned roughly $250 million annually from the Canadian market.
The decline was swift and severe. From March through December, exports fell from $203 million in 2024 to just $60 million in 2025 — a roughly $143 million loss.
Even though some tariffs have been lifted, most Canadian provinces still keep American alcohol off store shelves. “Our industry thrives in a zero-for-zero tariff environment,” Chris Swonger, DISCUS president and CEO, told Fox News Digital.
The export slump comes as President Trump continues to use tariffs as economic leverage — a strategy aimed at strengthening U.S. manufacturing and reducing trade imbalances. Swonger acknowledged the administration’s efforts but said the loss of Canadian shelf space has had a major impact.
“Since Liberation Day, it’s unfortunate to report that our industry has lost over 70% of our exports to Canada because many provinces have decided not to carry American spirits,” Swonger said.
The effects are felt most sharply in Kentucky, the heart of America’s bourbon industry.
The Bluegrass State produces 95% of the world’s bourbon, employs more than 23,000 people, and generates around $9 billion annually, according to the Kentucky Distillers’ Association. For local distillers, the trade disruption goes beyond the border.
Owen Martin, master distiller at Angel’s Envy, said the impact extends into the bourbon-making process itself.
“There are the tariffs on finished goods and on us shipping abroad, but I’m even thinking a step below that,” Martin explained. He highlighted barrels as an example. By law, bourbon must be aged in new American oak barrels, which can only be used once. But port casks — used to finish Angel’s Envy bourbon — can be reused multiple times.
“Those are the sorts of things, as a maker, that I have to be aware of in any given year,” Martin said. “You have different opportunities and different challenges.”
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