President Donald Trump entered the White House for the second time, promising economic revival via his aggressive tariff policies. However, a trade group based in the United States said that sales of American-made adult beverages and spirits have dropped 85 percent in Canada.
In a report published by the Distilled Spirits Council of the United States (DISCUS), sales of American-made spirits have dropped exponentially since President Trump took office and imposed a 25 percent tariff on American goods exported to Canada this past March. As of September 1, Canada has removed its retaliatory 25 percent tariff on American goods.
“After celebrating a record year for U.S. spirits exports in 2024, this new data is very troubling for U.S. distillers,” said DISCUS President and CEO Chris Swonger. “Persistent trade tensions are having an immediate and adverse effect on U.S. spirits exports. There’s a growing concern that our international consumers are increasingly opting for domestically produced spirits or imports from countries other than the U.S., signaling a shift away from our great American spirits brands.”
At the root of the sinking sales, government-controlled liquor stores in Ontario and Quebec have banned the sale of American-made adult beverages. This has had a profound effect, most especially on American single malt whisky sales, which have all but dried up in Canada.
CNN examined the DISCUS report and spoke with one American spirits producer who explained how the Canadian ban has hurt his business.
“This was all about some ugliness that we’re not part of,” said Virginia Distillery CEO Gareth Moore to CNN. “We’re not in politics. We’re just some guys in Virginia making good whisky. But unfortunately, we’re the victims.”
CNN also added that the Trump tariffs and the response from other nations have also had an impact on business in Europe, with Cedar Ridge Distillery, a renowned whiskey producer from Iowa, withdrawing from the European market altogether.
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