U.S. whiskey exports to Canada have collapsed by nearly 70% following a trade dispute triggered by President Donald Trump's tariffs, which led Canadian provinces to remove American whiskey from store shelves [1]. In 2025, Canada dropped from being the second-largest destination for American spirits to sixth, as exports declined two-thirds to $89 million, compared to roughly $250 million annually before the dispute [1]. From March through December, exports fell from $203 million in 2024 to just $60 million in 2025, representing a $143 million decrease [1].
Despite the lifting of some tariffs, most Canadian provinces continue to exclude American alcohol from retail stores, significantly impacting U.S. distillers [1]. Chris Swonger, president and CEO of the Distilled Spirits Council of the United States (DISCUS), emphasized that the industry thrives in a zero-for-zero tariff environment and acknowledged the Trump administration's efforts to reduce trade imbalances, but noted the substantial loss of Canadian shelf space has severely affected exports [1]. Swonger stated, "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" [1].
The repercussions are particularly acute in Kentucky, which produces 95% of the world's bourbon, employs more than 23,000 workers, and generates $9 billion annually, according to the Kentucky Distillers’ Association [1]. Owen Martin, master distiller at Angel’s Envy, highlighted that the consequences of the trade dispute extend beyond tariffs on finished goods and affect the bourbon-making process, including supply chain pressures related to barrels and casks [1].
The export downturn is primarily attributed to provincial retail bans in Canada, with the majority of provinces yet to restore American alcohol to government-run retail stores [1].
CONCLUSION
The U.S. whiskey industry has suffered a dramatic decline in exports to Canada, losing over 70% of its market due to ongoing provincial retail bans and fallout from the Trump administration's tariff policies. The impact is especially severe for Kentucky's bourbon producers, affecting both sales and supply chains. Unless Canadian provinces reopen their shelves to American spirits, the export market is likely to remain significantly diminished.