Story perspectives

U.S. Spirits Exports to Canada Plunge 70% Amid Tariffs

3/4/2026

Summary

Story summary

U.S. spirits exports to Canada fell nearly 70% in 2025 to $89 million from $250 million.
Canada dropped from the second-largest market to sixth for U.S. spirits.
Tariffs implemented during U.S. President Donald Trump's administration contributed to the decline.
Kentucky, which produces 95% of the world's bourbon, faces production and supply chain challenges, according to master distiller Owen Martin.
Chris Swonger, president of the Distilled Spirits Council, described the impact on the industry.

History

Historical Context

In 2018, the U.S. imposed 25% tariffs on steel and aluminum imports, citing national security concerns, which strained trade relations with Canada. This led to retaliatory tariffs from Canada, affecting $16.6 billion worth of U.S. goods, including spirits, where exports plummeted from $250 million to $89 million. The situation highlights the significant impact of trade policies on economic sectors and international partnerships.

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Story summary

U.S. spirits exports to Canada fell nearly 70% in 2025 to $89 million from $250 million.
Canada dropped from the second-largest market to sixth for U.S. spirits.
Tariffs implemented during U.S. President Donald Trump's administration contributed to the decline.
Kentucky, which produces 95% of the world's bourbon, faces production and supply chain challenges, according to master distiller Owen Martin.
Chris Swonger, president of the Distilled Spirits Council, described the impact on the industry.

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