U.S. spirits exports to Canada “fell” 85 percent in the second quarter of 2025, with the U.S. Distilled Spirits Council calling the situation “very concerning” as consumers in key international markets turn to alternatives to U.S.-made products amid trade tensions.
Numbers come like American alcohol largely remains on Canadian shelves and is unavailable in bars and restaurants in response to US President Donald Trump's decision to impose tariffs for Canadian goods in early March.
IN report released earlier this weekThe council said exports to the UK and Japan fell by 29 percent and 23 percent respectively, but the biggest declines came from Canada. These countries, along with the European Union, they accounted for 70 percent of US liquor exports in 2024.
The Council represents producers of spirits such as whiskey, vodka, rum and brandy.
“This shift may reflect a broader view that U.S. tariffs are unfair, prompting consumers to support their domestic industries or respond by seeking products outside the U.S.,” the council's report said.
In a press release, council CEO Chris Swonger addressed the trade tensions. have an immediate and adverse impact on U.S. liquor exports.
“We encourage the President to promote a long-term return to duty-free trade with our long-time trading partners to ensure the continued growth and vitality of this great industry,” he said.
The council did not respond to an interview request by deadline.
Prime Minister Mark Carney said Wednesday that Canadian and U.S. officials negotiations on the terms of the tariff deal.
In late August, Brown-Forman, the parent company of alcohol producers such as Jack Daniel's and Woodford Reserve, said that sales to Canada fell 62 percent during the first fiscal quarter of 2026, which ended July 31.
In an August conference call with investors, Brown-Forman CEO Lawson Whiting said the trade dispute had caused “significant headwinds.”
“While our foreign brands such as Diplomatico and El Jimador continued to show growth, they were unable to offset the decline of our U.S.-made brands,” he said at the time.
Robert Huish, an assistant professor at Dalhousie University in Halifax who specializes in international relations and tariffs, isn't surprised by the drop in U.S. liquor exports to Canada.
“Some of the largest buyers of liquor in the U.S. are Canadian: the LCBO in Ontario and the SAQ in Quebec,” he said. “They are big buyers of American spirits and, of course, American wine, so seeing empty shelves would be huge.”
Nova Scotia sees local alcohol sales rise
Nova Scotia Liquor Corporation, a Crown corporation that is the province's largest alcohol retailer, says removing American products from shelves has led to increased sales of local products.
From March 4 to Sept. 15, Nova Scotia liquor and wine sales were up 24.2% and 15.1%, respectively, compared to the same period a year ago.
Olivia Giffen, vice-president of marketing and retail for Coldstream Clear, a Nova Scotia-based liquor and beer producer, said liquor sales are up significantly.
“I think with everything going on, people were really asking, 'OK, what local foods can I choose now?' and make a conscious decision to find foods that they still like to taste, but the big bonus is that it's local,” she told CBC. Information morning recently.
Canadian wine and whiskey are experiencing a surge
The NSLC also reported that Canadian wine and whiskey sales were up 8.9% and 8.5%, respectively, from a year earlier.
If the trade dispute is resolved and American alcohol becomes widely available again, Huish expects some Canadian consumers to continue to buy Canadian alcohol.
“As we hear day after day, feelings are still hurt and many Canadians may think this relationship with the U.S. is not going to come back,” he said. “And so rather than looking for a product for convenience, a conscious choice of national loyalty will come into the equation.”
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