US distillers are suffering from an 85% drop in exports to Canada due to the trade war, benefiting local producers.
New data from the U.S. Distilled Spirits Council shows that sales outside the country continued to fall in the second quarter of 2025.
However, nowhere else is the decline as dramatic as in Canada, where most provinces have removed these American products from their shelves.
Today, “Canada remains the only major trading partner targeting U.S. alcohol,” the Council notes.
“After celebrating a record year for U.S. alcoholic beverage exports in 2024, this new data is very concerning for U.S. distillers,” said Chris Swonger, President and CEO of the Council.
Local distillers
In Quebec, consumers accustomed to consuming American spirits were able to turn to alternatives, including Quebec products.
David Soucy, owner of Distillerie Mitis in Lower Saint-Laurent, says sales of his new spiced rum are growing month after month.
“It was probably a substitute for American spiced rum,” he explains.
Overall, the company has had a good year, with sales growth noted.
“Probably, the recall of American products has a positive effect, but I [serais] I hate to say that it’s all because of this,” Mr. Soucy adds.
Data at the end of July showed that sales of Quebec products at the SAQ jumped 25% following the withdrawal of American products. Enthusiasm for local wine was even greater, with sales up 60%.
The U.S. Distilled Spirits Council has also expressed concern about the long-term effects of these changes in drinking habits.
“We are concerned [de ce] that our international consumers are increasingly turning to spirits produced locally or imported from countries other than the United States, which involves a shift away from our core American alcohol brands,” Mr. Swonger noted.
