US Whiskey Exports to Canada Plummet Nearly 70% After Trump Tariff Dispute

Canadian provinces block American spirits sales, devastating a key overseas market for US distillers

Published on Mar. 4, 2026

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American whiskey exports to Canada collapsed 65% after trade war tariffs, dropping from $250 million to $89 million as Canadian provinces blocked U.S. spirits sales in the aftermath of a dispute triggered by President Donald Trump's tariffs.

Why it matters

The collapse of American whiskey exports to Canada, once the second-largest destination for U.S. spirits, has had a devastating impact on the industry, particularly in Kentucky, the epicenter of the bourbon business which produces 95% of the world's supply and generates $9 billion annually.

The details

In 2025, Canada slid from the second-largest destination for American spirits to sixth, as exports declined two-thirds to $89 million. The drop was immediate and relentless, falling from $203 million in 2024 to just $60 million in 2025 - a $143 million wipeout. Despite the lifting of some tariffs, most Canadian provinces continue to shut American alcohol out of retail stores, with the industry losing over 70% of its exports to Canada since the dispute began.

  • In 2025, Canada slid from the second-largest destination for American spirits to sixth.
  • From March through December 2025, exports fell from $203 million in 2024 to just $60 million - a $143 million wipeout.

The players

Distilled Spirits Council of the United States (DISCUS)

The national trade association representing producers and marketers of distilled spirits sold in the United States.

Chris Swonger

President and CEO of the Distilled Spirits Council of the United States (DISCUS).

Owen Martin

Master distiller at Angel's Envy, a Kentucky-based bourbon producer.

Kentucky Distillers' Association

The non-profit trade group that represents Kentucky's bourbon industry, which produces 95% of the world's bourbon supply and generates $9 billion annually.

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What they’re saying

“Our industry thrives in a zero-for-zero tariff environment.”

— Chris Swonger, President and CEO, Distilled Spirits Council of the United States (DISCUS) (Fox News Digital)

“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.”

— Chris Swonger, President and CEO, Distilled Spirits Council of the United States (DISCUS) (Fox News Digital)

“There are the tariffs on finished goods and on us shipping abroad, but I'm even thinking a step below that. You have different opportunities and different challenges.”

— Owen Martin, Master Distiller, Angel's Envy (Fox News Digital)

What’s next

The industry is hoping the trade dispute with Canada can be resolved, allowing American whiskey to regain access to store shelves in Canadian provinces.

The takeaway

The collapse of US whiskey exports to Canada, once a top destination, has had a devastating impact on the American spirits industry, particularly in Kentucky's bourbon heartland. The trade dispute highlights the vulnerability of export markets to geopolitical tensions and the importance of maintaining free trade agreements for industries like distilling that rely on global sales.